A

successful economic development strategy must focus on improving the skills of the area's workforce, reducing the
cost of doing business and making available the resources business needs to compete and thrive in today's global
economy. Rod Blagojevich

MODI Goes Global One step more for development

Vol. III, No. 19, 8 May 2015

Prime Minister Narendra Modis three-nation tour to France, Germany & Canada was intended to deepen strategic partnership &
enhancing bilateral scientific & technological cooperation. The focus of the visit was to shore up as much foreign direct investment
(FDI) and technological expertise as he can for the BJP-led NDA Government's pet projects: Make in India, Smart Cities, Clean India,
Skill Development, Defence, Energy Security, Railways, Roads and Ports Management. All of these programmes have the Prime
Minister in the driver's seat. The success of each of these initiatives is as important to the BJP as it is to the Prime Minister. The prime
objective behind this visit was to deepen bilateral strategic partnerhip, augment investment flows into our economy & enhance
bilateral scientific & technological cooperation PMs Summit level talks results in signing various MOUs a & agreements related to
defence, energy, infrastructure, skill development etc. with the heads of three nations.
By virtue of being one of the permanent five members of the UNSC, Indias relations with France assumes more importance because
France cooperation is of vital importance for Indias entry into the Global elite league. Indias relations with Germany becomes
important because of its leadership role in the European politics in the European Politics & its influence in the formation of leading
global forums like G8 & G20.Growing cooperation between the two nations has been clearly reflected by the joint statements issued
by their respective leaders. Indias emphasis on augmenting relations with Canada is evident from the fact that Modis visit is the first
bilateral visit by an Indian PM n 42 years. For enhancing bilateral cooperation & overcome the energy deficit, the signing of a
business deal with Cameco Corporation to operationalize the India-Canada Nuclear cooperation Agreement is one step taken ahead.
Economic cooperation with the 28 member politico-economic grouping is of utmost importance because for India EU leads in terms of
trade partnership, source of investment & technology in the world. Apart from this declining saving rate (as per the economic survey
2014-15) coupled with declining capital formation rate from 38.2% in 2011-12 to 32.3% in 2013-14 requires stronger relations with EU
in order to mobilize the necessary resources for achieving the set objectives of Make In India, Digital India & Smart Cities Initiatives.
Thus, during the visit, Germany agreed to leverage its influence over the EU for early completion of talks over the India-EU Free
Trade Agreement which was launched in June 2007. Germany also agreed to take proactive steps to advance collaborations in the
areas of manufacturing, skill development, urban development, environment, railways, cleaning of rivers etc. To tackle energy deficit
in the country, Indias economic relations with France are of importance as France derives about 75% of its electricity from nuclear
energy. AREVA French nuclear major has signed two MoUs with L&T & NPCIL to develop indigenous nuclear technology.
Similarly, Cameco Corporation of Canada, the worlds largest uranium supplier, agreed to supply the nuclear fuel worth 350 million
US $ till 2020 starting from 2015. The countries also agreed to conclude talks on india-canada CEPA ( Comprehensive Economic
Partnership Agreement) by Sep15 & operationalization of bilateral FIPA ( Foreign Investment Promotion & Protection) signed in 2007.
Because of the fact that India is the 4th largest energy consumer in the world as such energy deals with France & Canada are of prime
importance & further India needs high energy requirements to sustain growth momentum in future.
In essence, Modis visit to three developed nations(members of G8) focussed on articulating the improved ease of doing business
conditions in the developing nation like India & to attract necessary capital & technological resources to ensure faster & sustainable
economic development of the country.

By: - Sarabjeet Singh,

Faculty of Marketing

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