Industry and services issues can be resolved

The Indian Minister of Commerce, Kamal Nath, today arrived in Paris to attend the French joint commission on commerce tomorrow. "Les echos" met it in New Delhi before his departure. In this exclusive interview, Kamal Nath insists on the necessary strengthening of exchanges between the France and the India, still far from their potential. And calls for a strengthening of cooperation between the two countries. Kamal Nath deplores, in this regard, the intervention of the French Government in the case of Mittal Steel-Arcelor and ostracism which are still victim Indian groups in Europe (also read our information page 26).

Economic relations between the France and the India are below their potential. Finally is the situation evolving in the right direction

Yes, the situation is improving. Bilateral trade now exceeds $ 3 billion and growing by 26 per year. That said, we are still far from the potential, and this is why we have a joint commission. Our two Governments have yet to do more to facilitate both trade investments. We must not only increase the volume of trade but also to expand the range of products that we share, of both sides. For example, we can provide more textile or pharmaceutical products, and the France could send more advanced technology products.

Since 2004, the France entered the India in its list of "priority countries" to develop commercial relations. The Indian side, the France part of priorities

The France is our fifth trading partner in the European Union. With my colleague Christine Lagarde, we will take advantage of the joint commission, Wednesday, to study the problems raised by our respective industries. This commission is an institutional mechanism to address economic issues and bilateral trade, including market access issues, for example access France of Indian products and the Indian professionals.

The France is only the seventh foreign investor in India. In what areas should the French companies invest more

Chemical products for industrial equipment through transportation equipment or agri-food, opportunities to invest are many. But, whatever the sector, the most important, in my view, is to convince the small and medium enterprises to invest in their turn. Major French groups are already present, with some large investments. We now attract SMEs, which have much to gain foothold in this country. The India currently enjoys a unique workforce capacity: 400 million Indians were aged 18 to 35, while aging European population, it. This Indian workforce, coupled with the technology and the French innovation capabilities, can lead to the creation of competitive products.

Of course, but many foreign investors are cooled by the slow pace of Indian economic reforms. That their answer you

These concerns are displaced. Economic reforms take time because it must calibrate the size and complexity of this country of more than one billion people. For foreign direct investment, we now have one of the more liberal policies in the world. I do not think that the problem Vienna of the legislation, but rather an outdated view of the India.

You have been very critical of the France of the Mittal-Arcelor case. Why

The France defends globalization, or globalization necessarily leads to this type of cross-border acquisitions. Governments should not to meddle in this sort of thing, because this inevitably gives an impression of discrimination. Leave these issues to the shareholders and industry, otherwise it has the feeling that the right to national treatment, provided by the world Organization of the trade (WTO), is not respected. It is natural that any Government cares about the future of its national industry. But it does not have to intervene directly: shareholders and sector specialists are better equipped to make such decisions.

How you respond to the concerns raised by some unions and French professionals of champagne to the candidature of the Indian group United Breweries in the redemption of Taittinger

United Breweries withdrew its offer, the chapter is therefore closed. But, so general, the nationality of the buyer should not be of importance. These decisions should be based on commercial considerations. Rolls Royce was a British symbol, today is a German company, and nobody does it in object.

As a leader of the countries of the South to the WTO, you see an outcome in the short term to the current deadlock in the negotiations of the Doha round

To take the case of the France, I respect the French sensitivities on agriculture, because I know that agriculture is not only a question of trade. But this approach should also apply to the India. For us, agriculture is a question of livelihood: the survival of 600 million Indians depend on it directly. The situation débloquera that if developed countries take this into account adequately. This is not the case for the moment.

Doha Round therefore risks lengthy...

We wish obviously all reach an agreement by the end of the year, as planned, and work hard to reach a consensus. But, yet again, there will be convergence between the various members of the WTO only if each and other sensitivities are respected. Industry and services issues can be resolved. The big problem is agriculture.