NEW DELHI: After forging close partnership in the defence domain, India and France are now looking at ramping up economic and trade ties as it is crucial to rely on “trusted” partners in these “turbulent times”, French foreign trade minister Sophie Primas has said. In an interview to PTI, Primas said French companies are looking at expanding engagement with India in sectors like aeronautics, transport, energy infrastructures, sustainable development and emerging technologies.
“India and France have always maintained a relationship of deep trust over the years, which becomes even more significant in the context of geopolitical turmoil and disruptions in supply chains,” she said. “In these turbulent times, it is crucial to rely on trusted partners to advance together and develop joint cooperation. The stability and strength of our bilateral ties ensure resilience and strategic advantage as we navigate these challenges together,” the minister added.
Her comments came amid rising concerns in Europe over the escalating tensions between Russia and Ukraine, the conflict in Gaza and uncertainty on implications of the economic policy of the incoming Donald Trump administration. At the same time, Primas highlighted the upward trajectory of India-France bilateral partnership affirming that both sides are now focusing on boosting economic and trade relations.
“Strategic alignment, especially in defence, has been a cornerstone of our relations over the years. Recently, there has been a significant boost in our economic and commercial exchanges,” the minister said in her written response. The defence and strategic ties between the two countries have witnessed major upswing in the last few years with India procuring a number of mega military platforms including fighter jets and missiles from France.
Primas said France is also looking forward to further negotiations between New Delhi and the European Union for finalisation of a “mutually beneficial” free trade deal that could expand two-way economic engagement. “The EU remains committed to negotiating a mutually beneficial deal that incorporates ambitious sustainable development goals. Continued dialogue at the EU level is anticipated to further this objective,” she said.
India and the EU relaunched negotiations for the ambitious trade deal in June 2022 after a gap of over eight years but the talks have dragged on for a variety of reasons including the 27-nation bloc’s position on carbon tax. On bilateral trade, the French foreign trade minister, who visited India from November 27-29, said there is potential for more growth in the trade sector.
“Despite France being the top European destination for foreign investments continuously since 2020, it ranks only sixth for Indian investments in Europe,” she said. “I encourage Indian firms to seize the opportunities offered by the France-India 2047 partnership and leverage France’s advanced technological and industrial ecosystem to significantly boost their growth and invest in a country that is a hub for foreign investment in Europe,” she added.
The 2047 ‘Horizon Partnership’ was unveiled following wide-ranging talks between Prime Minister Narendra Modi and French President Emmanuel Macron in Paris in July last year. Its aim was to shore up bilateral ties including in trade and investment. The French foreign trade minister noted that the volume of India-France trade increased by 20 per cent in 2022, 13 per cent in 2023, and early data for the first half of 2024 is highly encouraging as it showed a 26 per cent increase to Euro 9.4 billion.
At the same time she said there is room to expand and enhance the trade ties further. “French companies are committed to supporting India’s development in transport, digital, and energy infrastructures, recognising significant potential in sectors like aeronautics, sustainable development, and emerging technologies,” she said.
“France and India already have a strong partnership in aeronautics, where French firms hold a substantial market share.” “There is also a focus on enhancing French presence in transport infrastructure, and clean energy sectors due to India’s growing needs,” Primas said. The minister also highlighted “significant opportunities” for deeper engagement between the two sides in digital technologies like Artificial Intelligence, and space.
Asked about the fast-track mechanism mentioned in the 2047 Horizon document for addressing issues pertaining to investments, Primas said it has proven to be a valuable forum. “Yes, the Fast-Track mechanism, established in 2020, has proven to be a valuable bilateral forum for addressing investment issues faced by French and Indian investors,” she said.
“It convenes biannually at a high level and has been very effective in maintaining momentum and fostering open dialogue. Regular meetings are crucial as they help ensure continuous progress and keep the channels of communication open,” she added. Asked about the India-Middle East-Europe Economic Corridor (IMEEC) project, Primas said it will strengthen strategic supply chains and that Paris views it as a source of regional integration, peace and stability.
Billed as a pathbreaking initiative, the IMEEC envisages a vast road, railroad and shipping networks among Saudi Arabia, India, the United States and Europe with an aim to ensure integration among Asia, Middle East and West. The IMEEC also envisages to include an electricity cable network, a hydrogen pipeline, high-speed data cable network to facilitate overall economic growth in the partner countries.
The project is also seen as an initiative by like-minded nations to gain strategic influence in the face of China’s Belt and Road Initiative (BRI) that has faced increasing criticism over lack of transparency and disregard for sovereignty of the nations. The BRI is a mega connectivity project that connects China with Southeast Asia, Central Asia, Russia and Europe.
