Wednesday, April 8, 2015

Indian Prime Minister to France to attract investors – L’Observateur

New Delhi (AFP) – Indian Prime Minister Narendra Modi arrived in France on Thursday for his first trip to Europe, with the goal of promoting India as a manufacturing base and backdrop of the uncertain progress of negotiations purchase of the Rafale.

The Indian leader will then stop in Germany, the largest economy in the euro area, to inaugurate the largest industrial fair in the world and also to promote his campaign for the “Make in India “.

The Hindu nationalist leader, banned from Europe after anti-Muslim riots in the state of Gujarat in 2002, this time should receive a lavish welcome, strong economic performance in India, where growth higher than China.

Modi, widely elected there nearly a year on the promise of boost investment and employment, relies on its ability to impose India as a production platform and export.

“I am delighted to go to France to strengthen the French involvement in our program in India + Make +, particularly in the defense sector,” Modi wrote on his Facebook account.

The Indian Prime Minister will meet with business leaders Friday and Saturday will visit the Airbus site in Toulouse (south).

With the “Make in India”, Modi promised to make life easier for businesses by reducing red tape and simplifying the tax system.

His government has increased to 49% participation that foreign investors can hold in companies in the sector defense, while wanting to promote technology transfer.

India is however classified as 142nd out of 189 countries ranked by the World Bank on the ease of doing business.

In Paris, the most sensitive issue will certainly be one of 126 Rafale sale negotiations to India, underway for more than three years, which figure prominently in the talks between Modi Hollande Friday the Elysee.

“We will have discussions on the subject,” confirmed President Hollande Tuesday while warning that he would not link this visit to Modi single sale of the Rafale.

France attempt to unlock this giant contract, which provides for the production of 108 aircraft on Indian soil, one innovative technological transfers. According to the Indian press, talks abut on the cost of the device.

According to the Times of India, India asked Dassault Aviation to stick to the original price. His boss, Eric Trappier recently assured that “in euros, the supply of Dassault has remained the same” and that the agreement was “95% completed”.

But elements such as inflation or the cost of the assembly line in India under the leadership of the public group Hindustan Aeronautics Limited (HAL) may affect the total cost for the Indian side

-. Nuclear and smart cities –

Nuclear energy should also be included in the focus, with the French side hopes to make progress on the sale of six EPR nuclear reactors to India, representing a capacity 10,000 megawatts.

Areva signed an agreement in February 2009 Protocol relating to the supply of two EPR initially on the site Jaitapur in Maharashtra (west) but discussions achopperaient, according to the press, on the price at which the India would buy the electricity produced.

“This is a big project on six reactors but can not be linked to a particular visit,” warned the ambassador of France in India, François Richier.

France should also promote its companies specializing in solar energy as the French know-how in the field of urban development.

French groups hope to enjoy the project Indian government to develop 100 “smart cities” (Smart Cities) with transport infrastructure, electricity and water efficient.

Modi will then promote the “Make in India” Sunday and Monday Germany, where he will inaugurate the Hanover Fair (Hannover Messe), the largest trade fair in the world, and hold talks with Chancellor Angela Merkel.

Germany is in the European Union, the largest trading partner of India.

With this economic displacement in Europe, Modi emphasizes the priority given to restart the Indian economy is expected to grow by 8% this year .

“The main objective for Modi is to improve its industrial base and to give a boost to growth,” notes Sujit Dutta, international strategy professor at Jamia Milia Islamia University in Delhi.

The exchanges between India and the European Union increased from 28.6 billion in 2003 to 72,700,000,000 in 2013.

After Germany, Modi will go to Canada home to a large Indian diaspora.

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