The Hindu Business Line : India, France sign pacts to boost trade, nuclear energy cooperation

COMING CLOSER: The French President, Mr Jacques Chirac, calling on the Prime Minister, Dr Manmohan Singh, at Hyderabad House in the Capital on Monday. — Ramesh Sharma

New Delhi , Feb. 20

INDIA and France today signed several agreements to boost trade and push nuclear energy co-operation between the two countries.

The `Declaration on Development of Nuclear Energy for Peaceful Purposes' was signed after extensive talks between the French President, Mr Jacques Chirac, and the Prime Minister, Dr Manmohan Singh, wherein the two countries have "agreed to continue to work together towards the fulfilment of that objective."

India and France also signed an agreement on defence co-operation, to build and expand ties in various areas, including procurement, production and research and development of defence material. Seven other pacts in the field of space, commerce, education, tourism, environment, culture and civil aviation were also signed.

Speaking at the India-France Economic Partnership meet, Mr Chirac said the two countries could co-operate in aeronautics and space. "About 250 Airbus aircraft have been ordered by various Indian companies such as Indian Airlines, Indigo, Deccan, Kingfisher and Go Air." In space research, EADS Astrium and Antrix, the commercial arm of the Indian Space Research Organisation, have signed contracts to provide a communication satellite for the international market.

On the trade front, the two countries have decided to increase it by two-fold, which would mean an annual growth rate of 7-8 per cent.

The French President also added that the two countries could work together in the health sector. He said companies such as Sanofi have chosen India to trade and conduct research here. France could take advantage of India's experience in the generic drugs sector, as this could be a way for the world's poorest countries to access drugs and treatment.

He also said France has one of the largest agro-food industries and hence it could support this sector here. Talking about the potential in the service sector, Mr Chirac said retailers like Carrefour have an opportunity to develop and grow here.

In his address at the meeting, the Commerce and Industry Minister, Mr Kamal Nath, called for a target of a sustained average foreign direct investment of $1 billion annually from France into India and an evenly balanced total trade turnover of $10 billion within three years.

During 2004-05, bilateral trade was of the order of $2.99 billion and it registered a growth of 26 per cent over 2003-04. During April-November 2005-06, bilateral trade has registered a growth of 18 per cent.

The total FDI approved from France in 15 years (since 1991) stood at $1.76 billion out of which the actual inflow of FDI from France is of the order of $768 million.

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