INTRODUCTION
India and France have a long and cordial relationship, which is reflected in their trade ties. The two countries’ economic and commercial relationship has grown steadily over the years, with bilateral trade reaching new heights. Defense, aerospace, infrastructure, and energy are all areas where the two countries have a long history of collaboration.
With a GDP growth rate of 7.7% in 2022-23, India is the world’s fastest-growing major economy. France, on the other hand, has a highly developed economy and is a member of the European Union. It has the world’s fifth-largest nominal GDP.
The bilateral trade throughout the years
Over the years, trade between India and France has grown rapidly. Bilateral trade between the two countries was estimated to be around $13.9 billion in 2020, with India’s exports to France accounting for $5.5 billion and France’s exports to India accounting for $8.4 billion. Petroleum products, pharmaceuticals, and textiles are among India’s top exports to France, while aircraft, electrical machinery, and chemicals are among France’s top exports to India. France has been a significant investor in India, with French firms investing in a variety of sectors including automotive, information technology, energy, and infrastructure. French businesses such as Total, Veolia, and Alstom have made investments in India’s energy and infrastructure sectors. Similarly, French auto companies such as Renault and PSA Peugeot Citroen have made substantial investments in India’s automobile industry.
Contribution in different sectors
In the defense sector, India and France have also collaborated. France has supplied India with a significant amount of military equipment, including fighter jets, submarines, and helicopters. The two countries have also conducted joint military exercises, which have helped to strengthen their defense ties. France has been a popular educational destination for Indian students, with over 6,000 (post covid 19 survey in 2021-22 academic year) Indian students studying in France. Also France expressed its desire to have 20,000 Indian students by 2025. In addition, the two countries have signed agreements for academic and research collaboration between their universities.
France has supported India’s bid for a permanent seat on the United Nations Security Council. In addition, the two countries have collaborated on issues such as climate change, sustainable development, and terrorism. Indian Union minister Mr. Piyush Goyal remarked that the 25-year strategic alliance between India and France represents India’s progress at the India-France summit in 2023. Also, this year symbolizes 75 years of friendship between the two countries. India and France have strong relations in fields like technology, investments, and tourism thanks to the active Indian population in France, which acts as a living bridge.
INDO-PACIFIC PARTNERSHIP
The Indo-Pacific partnership model is a strategic initiative between India and France aimed at promoting cooperation between the two countries in the Indo-Pacific region. This collaboration is founded on shared values such as democracy, the rule of law, and adherence to international norms.
On January 5, 2023, Indian National Security Advisor (NSA) Ajit Doval met with his French counterpart, Emmanuel Bonne, for the 36th round of the Indo-French Strategic Dialogue. The discussions aimed at presenting a forward-looking strategic roadmap for the bilateral partnership in defense and security in order to address current geopolitical trends.
The strategic partnership between France and India presents itself as a practical framework for convergent growth between the major powers of the East and West. Recognizing the complexity of the global geopolitical landscape, both states have successfully expanded and deepened their cooperation to address current international trends, including the developing strategic complexities in the Indo-Pacific region. Despite being a European power, France has significant territorial holdings from the Western Indian Ocean (WIO) to the South Pacific, a population of over 1.6 million, and a strong military presence in the Indo-Pacific, which raises the significance of its strategic stakes in the area. France’s interests are notably political-security in nature, given that only 8% of French commercial goods pass through the South China Sea, in contrast to other European powers that are primarily seeking to deepen their footprints in the Indo-Pacific region for economic gains. With China seeking to expand its influence in the region, the Indo-Pacific region has emerged as a critical arena of strategic competition. In this context, India and France have identified the need for increased cooperation in order to maintain a free, open, and inclusive Indo-Pacific.
India’s expanding diplomatic and material capabilities continue to strengthen its geopolitical position in the region as an Indo-Pacific power and a traditional provider of security in the Indian Ocean region. Therefore, improving strategic ties with India may open up new diplomatic avenues for France to strengthen its position in the Indo-Pacific, as evidenced by potential trilateral frameworks that France, India, and other nations might have with nations like the UAE, Australia, Indonesia, and Japan.
In general, India and France’s Indo-Pacific partnership model is a significant initiative that aims to advance stability and prosperity in the Indo-Pacific region. It reflects the growing strategic similarity between the two nations and their determination to cooperate in order to tackle shared problems.
Challenge
However, as with any trade relationship, there are some issues that must be addressed. One of the major issues is India’s trade imbalance with France, with India’s imports from France far outnumbering its exports to France. Both countries must work together to address this issue and increase the volume of bilateral trade.
If talking about Indo-pacific partnership, there are some challenges which the two countries need to look out like China’s growing influence, coordination with other partners (US, Japan and Australia) and Resource constraints (The military capabilities of France, for instance, are dispersed across a number of areas, whereas India has difficulty securing the funding it needs to support regional infrastructure development projects).
Conclusion
Trade and investment are the foundation of India and France’s bilateral ties, which have a strong economic relationship. The two nations have worked closely on international concerns like climate change and terrorism as well as in a number of industries including infrastructure, defense, and aerospace. India-France commercial relations have a promising future, and both nations are anticipated to continue fostering their alliance in the years to come.
by- Pranidhi
SCMS Noida
References:
- Trade relations between India and France
- India-france summit
- France desire for Indian students
- Statistics related information
- Indo-pacific partnership
European Horizons Symbiosis Chapter 