Modi’s visit to France and ‘The Make in India’ project

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Modi’s visit to France and ‘The Make in India’ project - © Indian Defence Review
Prime Minister Narendra Modi with French President Francois Hollande. File Photo

Prime Minister Narendra Modi is embarking on a 9-day tour abroad during which he will visit France, Germany and Canada. His first stop will be in Paris (April 9-12).

A few comments on his visit to France:

‘Make in India’ will undoubtedly be central to the Prime Minister’s visit to Europe.

The good news first 

On April 6, Defence Minister Manohar Parrikar ‘undocked’ the first of the six Scorpene submarines to be built in collaboration with France under Project 75, at the Mazagon Docks Limited (MDL).

The ceremony for ‘floating out’ the first Scorpene submarine was an occasion for Mr. Parrikar to review the progress of the Project 75, in collaboration with DCNS of France.

After the ‘undocking’, for the first time the submarine entered into waters (with the help of a pontoon).

An Indian Navy official told the media: “While the launch would be a more significant event, the floating out of Scorpene will commence its sea trials and more importantly, clear the dry dock that it presently occupies for the construction of the next one.”

It is a promising progress for the ‘Make in India’ scheme. It is also shows that despite the difficulties and the delays, it is possible.

The ‘refitted’ Mirages

Perhaps as an appetizer for the Rafales deal, the IAF got its first two upgraded Mirage-2000 with new avionics and weapons at the end of March.

The ‘Maitri’ project, like the ‘Brahmos’ with Russia, could become a success story for the ‘Make in India’.

An ‘acceptance’ ceremony for the IAF’s Mirage 2000 I/TI was held at Istres, in South France on March 25. Among those present were Arun K. Singh, ambassador of India to France, Eric Trappier, chairman and CEO, Dassault Aviation and Pierre Eric Pommellet, executive vice president of Thales. The contract for ‘refitting’ the IAF’s Mirage 2000 was signed in July, 2011. The upgrade ‘kit’ provided by Thales comprised new radar, electronic warfare suite and mission computer.

An official told The Times of India: “The upgraded Mirages have been stripped down and virtually re-built with state-of-the-art avionics, radars, mission computers, glass cockpits, helmet-mounted displays, electronic warfare suites and long-range missiles.”

Of course, the appetizer can’t replace the main course (Rafales), but one has to remain patient.

The ‘Maitri’ project

An important decision was recently taken by the Defence Acquisition Council: it approved the ‘Maitri’ project for the co-development of a Short Range Surface-to-Air Missile (SR-SAM) by the Defence Research and Development Organisation (DRDO) with MBDA of France.

The project has been ‘pending’ since 2007 and apparently, Delhi will now go for the marine version as the DRDO’s Akash missile system satisfies the Indian Army and the Air Force.

The ‘Maitri’ project, like the ‘Brahmos’ with Russia, could become a success story for the ‘Make in India’. The signature on the SR-SAM deal could be the ‘main dish’ of Modi’s present visit.

Coastal Surveillance Radar System 

According to The Economic Times (ET), India and France are expected to discuss the sharing of radar data in the Indian Ocean as part of their strategic talks during Narendra Modi’s visit to Paris.

India is setting up a grid of coastal surveillance radars in the Indian Ocean Region (IOR) which should help monitoring the region. France has apparently expressed an interest in sharing data from its surveillance systems.

India is setting up a grid of coastal surveillance radars in the Indian Ocean Region (IOR) which should help monitoring the region. France has apparently expressed an interest in sharing data from its surveillance systems.

The ET says that “the modalities of sharing maritime domain awareness data from at least three French monitoring sites in the Indian Ocean is set to be on the agenda. French territories in the region include the Reunion Islands and Mayotte, besides military bases in UAE and Djibouti.”

Apparently, the Indian Navy is keen on the French proposal and would like it to be part of an ambitious plan to set up a 24-nation radar grid in the IOR to monitor all traffic, civilian and military. “As part of the plan, India could also lend financial aid to littoral nations for setting up radars. In the future, surveillance data from other military sites, including the American base at Diego Garcia, could be integrated,” says the ET.

It is however doubtful if France will agree to ‘counter’ China in the region.

On April 3, Chinese and French military officials reached a consensus in Beijing “on enhancing cooperation in exchange of ship visits, joint drilling and countering terrorism at sea.”

Gen. Fang Fenghui, chief of general staff of the Chinese People’s Liberation Army (PLA) met with Admiral Bernard Rogel, chief of staff of the French Navy in Beijing.

According to Xinhua, Admiral Bernard Rogel during his recent visit to China, declared that the rapid development of Chinese Navy’s armaments and the excellent personnel quality left a deep impression on him: “He pledged to deepen mutual understanding and enhance cooperation with the Chinese side in the aspects of fleet visits, joint drilling and training as well as fighting against maritime terrorism.”

‘Varuna’ Joint Exercices with the Charles de Gaulle Carrier

The French aircraft carrier Charles de Gaulle, which has recently been inducted against the Islamic State from the Persian Gulf, will participate in the Indo-French exercises ‘Varuna’ later this month.

Varuna will be held for 10 days in the Arabian Sea between the French and Indian Navies. It will also involve India’s aircraft carrier, the INS Vikramaditya as well as other Indian warships and a submarine.

Varuna will be held for 10 days in the Arabian Sea between the French and Indian Navies. It will also involve India’s aircraft carrier, the INS Vikramaditya as well as other Indian warships and a submarine.

During the exercises, the French Navy will use Rafales (M), the ‘navalised’ version of the Rafale currently under negotiations with Delhi.

The exercise will begin on April 23 and continue till May 3. The French will also bring two destroyers and a support ship.

The Indian media reported: “The navalised version of the aircraft is adapted to land and take off from carriers. The Indian Navy’s main fighter jet is the Russian MiG29K. The fleet is being integrated with the Vikramaditya.”

The French side is keen to expose the Indian Navy to the Rafale (M), with the hope that a first-hand experience of the fighter jet, may convince the Indian Navy, if not the MoD, to add a few Rafales (M) in India’s wish list.

Visit to Toulouse One highlight of the PM’s trip will be the visit to Airbus Industries headquarters in Toulouse. At stake in Toulouse, a $2-billion contract for eight Airbus A-330 MRTT mid-air refuelers, a deal pending for over two years. There is also a proposal for buying two Airbus A-330 aircraft for the IAF which is keen to acquire AWACS (Airborne warning and control system). India’s ‘eye in the sky’ could be mounted on Airbus A-330 with Defence Research and Development Organisation (DRDO)-developed rotodome radar fitted on it.

The Prime Minister will probably be shocked when he discovers that the Chinese recently bought the Toulouse Blagnac airport.

What is the ‘Make in India’ scheme?

Mr. Modi’s ‘Make in India’ dream is something which should kept in mind while analyzing the significance of the Prime Minister to France and Germany.

I witnessed the new craze during the recent Aero India 2015, organized at Yelahanka Airport in Bangalore (‘Make in India’ was the theme of the event).

…Delhi notified an increase in foreign direct investment (FDI) limit to 49 % in the defence sector. The move was aimed at boosting India’s domestic industry and creating confidence amongst eventual investors.

Most of the foreign participants, even the Americans, were effusively enthusiastic about the scheme.

Foreign investors understood that the government was serious when, in August 2014 , Delhi notified an increase in foreign direct investment (FDI) limit to 49 % in the defence sector. The move was aimed at boosting India’s domestic industry and creating confidence amongst eventual investors.

A Policy Change

In Bangalore, the Prime Minister had the opportunity to clarify that India is ready for a major change in direction: “I am confident that India will emerge as a major global centre for defence industry. We want to develop an industry that is dynamic.”

The Indian Prime Minister wanted to end India’s status as the world’s number one defence importer; India’s objective is to have 70 % (from the current 40 %) of hardware manufactured domestically by 2020.

Mr. Modi explained: “We have the reputation as the largest importer of defence equipment in the world, that may be music to the ears of some of you here. But this is one area where we would not like to be number one.”

‘Make in India’ will undoubtedly be central to the Prime Minister’s visit to Europe.

But there is a long, long way to go.

A Civil Nuclear Deal?

Apart from French investments in India, space and civil nuclear cooperation, infrastructure investment, terrorism and other security issues, will also be on the table. Narendra Modi has redrawn his week-long tour of Europe-Canada tour to make Paris the first stop, before proceeding to Hannover.

The French investments in India are progressing rather well with the total investment stock of French companies in India reaching nearly $19 billion.

In September 2008, India and France signed the first civilian nuclear agreement and consequently, a General Framework Agreement between Areva and the Nuclear Power Corporation of India Limited (NPCIL) for the construction of 6 European pressurized reactors (EPR) at Jaitapur in Maharashtra was inked in December 2010 during President Sarkozy’s visit to India.

An Indian diplomat told The Hindustan Times: “The supply of EPRs will be on top of PM Modi’s agenda but much depends on the closure of commercial negotiations between the two companies.”

The finalization of the plans however depends on the economic and technical viability of these nuclear plants and as important, on an accord about ‘nuclear liabilities’.

The Indo-French Economic Cooperation

The French investments in India are progressing rather well with the total investment stock of French companies in India reaching nearly $19 billion.

French Embassy sources believe that in the next to 4 to 5 years, the stock of French investments in India will significantly increase with the consolidation and extension of existing investments, and the influx of new French companies in India. A Special Representative for Indo-French Economic Relations (Paul Hermelin, the CEO Capgemini) has been appointed by the French President for the purpose.

Today 950 French companies (350 companies and 400 subsidiaries, as well as 200 individual entrepreneurs) are said to be implanted in India; they employ some 3,00,000 skilled Indian workers.

Today 950 French companies (350 companies and 400 subsidiaries, as well as 200 individual entrepreneurs) are said to be implanted in India; they employ some 3,00,000 skilled Indian workers.

French Embassy sources say that these French companies have brought their know-how and technology and many have begun opening research and development centres in India (already employing between 15,000 and 20,000 persons).

France and ‘Make in India’

Last September, more than 20 French companies attended the launch of the ‘Make in India’ campaign; to cite a few: Alstom, Dabon-Bongrain, Danone, Faurecia, Lafarge, Legrand, L’Oréal, Michelin, Renault, Roquette, Safran, Sanofi Pasteur India, Schneider Electric, SEB, SERAP, Saint-Gobain, Total, Valeo and Vicat.

Let us look at a few examples: Renault-Nissan has begun production in May 2010 on a 640-acre integrated plant in Chennai, with an investment of €700 million. It has now an annual capacity of 480,000 units with a workforce of more than 15,000 employees.

Michelin set up a 290-acre campus, 50 km north of Chennai; it already manufactures a wide range of radial truck/bus tyres.

Last October, Safran, a world leader in aerospace, defence and security, which provides the engine of the Rafale (through its subsidiary SNECMA) signed two agreements with Indian Institute of Technology (IIT), Delhi, and Indian Institute of Science (IISc), Bangalore, to develop advanced pattern recognition algorithms for complex data and advanced computing platform for the next-generation avionics applications.

Another case is Saint-Gobain’s modern manufacturing facility in Rajasthan. A French press release says: “this state-of-the-art, fully automated float line covers a surface area of 27 acres and has a manufacturing capacity of close to 1000 tons of glass per day (3,00,000 metric tons per year). Once the plant is fully operational (by mid-2015), Saint-Gobain will have a total installed production capacity of 9,000 tons of glass per day.”

The French presence in South India, particularly in Chennai and Pondicherry is worth noting; more than 100 enterprises are implanted in the South.

The French presence in South India

The French presence in South India, particularly in Chennai and Pondicherry is worth noting; more than 100 enterprises are implanted in the South.

Apart from Renault and Michelin already mentioned, large French groups such as Alstom, Saint-Gobain, Lactalis have set up factories in Chennai. Interestingly, the management of these large companies is progressively transferred to local cadres, while the French personnel continue to focus on quality control and over-all financial management.

The main focus is presently automobiles and transport (such as Alstom Transport which produces metro bogies) and energy like Sicame (electric material), Schneider, Cryolor (cryogenic tanks), Legrand and Socomec (UPS). Saint-Gobain also has a large factory in Chennai.

In Pondicherry, the focus is more on hospitality, tourism as well as Internet editions and web design.

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