New Delhi, Feb 10
After building a strong partnership in defence, India and France are now focusing on expanding their trade and investment ties in areas like clean energy, new technologies, and aviation. Prime Minister Narendra Modi arrived in Paris on Monday to discuss these areas and take their cooperation to the next level.
Growing French Investment in India
France has become an important investor in India. Over 1,000 French companies are already operating in India, and France is the 11th largest foreign investor, with a total investment of $10.84 billion from April 2000 to December 2023.
PM Modi’s Visit and Key Events
During his visit to France, from February 10 to 12, PM Modi will co-chair the AI Action Summit, where world leaders and tech CEOs will discuss the role of artificial intelligence (AI) in driving innovation for public benefit. He will also visit the International Thermonuclear Experimental Reactor (ITER), a major project that aims to harness energy for the global good, with India being a partner in this project alongside France.
Energy Cooperation and Green Initiatives
India and France are exploring the possibility of working together on small modular reactors to strengthen their civil nuclear cooperation, which will help both countries push for clean energy solutions and fight climate change.
Looking Ahead: Free Trade Deal
French Foreign Trade Minister Sophie Primas recently visited India and mentioned that both countries are eager to continue negotiating a free trade deal with the European Union. This deal could help boost their economic relations even further.
Horizon 2047 and Future Plans
In July 2023, PM Modi and French President Emmanuel Macron introduced the Horizon 2047 partnership, which aims to deepen economic ties between the two countries. India-France Innovation Year is also set to be announced for 2026. Additionally, the two countries are expected to launch a new development cooperation initiative that will help promote growth in both nations.
Current Trade Between India and France
At present, trade between India and France is still below $20 billion, with much of it focused on defence and aerospace. Despite this, both countries are working on improving economic cooperation in many other areas.
Ongoing Defence Cooperation
India and France have been working together for over 50 years in military aviation, and their defence cooperation is now expanding. They are working together to develop combat aircraft engines and support the Indian Multi Role Helicopter (IMRH) program. The two countries are also collaborating on building submarines for India’s navy and exploring new projects to further improve India’s naval fleet.
Low Carbon Economy Cooperation
India and France are also joining forces to create a low-carbon economy. This cooperation aims to meet India’s growing energy needs as its cities grow and industries expand, while also focusing on energy security and achieving goals set by the Paris Climate Agreement.
As India and France continue to strengthen their relationship, they are not only deepening their defence cooperation but also expanding into new areas like clean energy, technology, and trade. This growing partnership is expected to benefit both countries, especially as they work together to meet the challenges of a rapidly changing world.
