While OP does not expressly say so, the implication is that as JQ has cancelled the flight, that JQ was the operating carrier of OP's flight, presumably the BOM-CDG segment. JQ, the operating carrier is not an EU carrier and this is a flight to the EU, not from. Thus, no EC 261/2004.
Nonetheless, AF still has contractual obligations here and will, on request rebook OP as it is doing for many others who have posted on FT. It goes without saying that his current ticket segment is cancelled. But, that does not mean it will simply be refunded (unless OP wishes).
OP should look at the options and then call AF. The easiest and best is to be rebooked on the AF-operated service as AF can accomplish that on the phone. But, the JQ situation does mean that availability will become a problem as time passes. Thus, OP ought to deal with this immediately lest the seats he want are gone by the time he calls.