Modinomics: Europeans queue up to offer support for infrastructure, defence, technology to the new government

NEW DELHI: Within weeks of Narendra Modi taking charge as Prime Minister with the promise of reviving the economy, key European powers seized the opportunity and offered their support for infrastructure projects, state-of-the-art defence equipment and high-end technology.

The engagement can prove beneficial to both sides as India needs investment of $1 trillion by 2017 to upgrade its infrastructure and European firms are keen to tap India’s market. The French foreign minister and his British counterpart came calling in successive weeks while Germany offered to organise a meeting between its chancellor Angela Merkel and Modi.

Even as French retail giant Carrefour is planning to withdraw from India, other French and European firms are keen to get a slice of the domestic market. India, on its part, needs foreign investment urgently to boost its infrastructure, government officials told ET. Besides, India requires state-ofthe-art defence items that the armed forces have been demanding for years now, officials added.

Like Russia, France has assisted India during crises and has been a steady partner in the fields of defence, space and nuclear energy. Unlike other developed nations, France didn’t impose sanctions after Pokhran II nuclear tests. Rather it seized the opportunity to cultivate India and assist its peaceful nuclear programme.

India, too, chose Raffle over other fighter jets a few years ago due to the support that France provided to India on global political platforms. France is now pushing for early conclusion of 126 Raffale fighter jets deal. Modi, during his meeting with Foreign Minister Laurent Fabius, sought French cooperation in the fields of tourism and low-cost defence manufacturing.

France could also help India build heritage and smart cities, officials said, pointing out that the country had provided technical support for the Ahmedabad Heritage Project. Fabius also offered India up to one billion euros in credit to fund its infrastructure and urban development projects.

However, Britain sees the delay in Raffle deal as an opportunity to push forward its own Eurofighter. British foreign secretary William Hague, during his trip, lobbied for the Eurofighter while the finance minister offered India a credit line of one billion pounds.