Following Prime Minister Modi’s participation in France’s Bastille Day celebrations, India and France commemorated their 25-year strategic partnership by unveiling the “Horizon 2047” roadmap. The roadmap focuses on defense, space, nuclear energy, climate change, education, and people-to-people connections. It emphasizes collaboration in digital public infrastructure, critical technology, defense cooperation, civil nuclear cooperation, and space cooperation. Bilateral trade between India and France reached US$13.4 billion in goods and US$6.3 billion in services in 2021. France is the 11th largest foreign investor in India, with over 1,000 French companies operating in the country. Indian companies have also invested in France, particularly in IT services, pharmaceuticals, and biotechnology. Recent bilateral developments include investment plans by Saint-Gobain in India, Air India’s partnership with Airbus, and Schneider Electric’s expansion in India.
In January 2023, India and France, longstanding allies in the Indo-Pacific region, marked the 25th anniversary of their strategic partnership established in 1988. Recently, during Prime Minister Narendra Modi’s visit to France on July 13–14, 2023, to attend France’s Bastille Day celebrations, the two countries adopted an extensive roadmap called “Horizon 2047.” This roadmap will guide their bilateral relations until 2047 and encompasses various areas of collaboration, including defense, space, nuclear energy, climate change, green transitions, education, and people-to-people connections.
Furthermore, the two countries have also unveiled another roadmap focused on enhancing cooperation in the Indo-Pacific region. This roadmap entails military and naval exchanges and the creation of a trilateral development fund aimed at assisting countries in the region.
It must be noted that the joint statement following Prime Minister Modi’s visit to France skipped mentioning the India-France deal for the procurement of 26 additional Rafale jets and three Scorpene-class submarines. This exclusion was primarily due to the statement’s emphasis on a 25-year roadmap and the ongoing negotiations related to the acquisition of Rafale jets and submarines. While the Defense Ministry’s Acquisition Committee has cleared these acquisitions, key negotiations regarding pricing and other details are currently being worked out.
Under the Horizon 2047 framework, India and France have established three essential pillars to further deepen their enduring partnership:
Within the European Union, France holds a prominent position as India’s fifth-largest trading partner. In the financial year (FY) 2023, the bilateral trade in goods between the two countries reached US$13.4 billion. Furthermore, the trade in services amounted to US$6.3 billion in 2021.
India’s exports to France have witnessed steady growth with an average rate of 7.1 percent, increasing from US$4.9 billion in FY 2018 to US$6.64 billion in FY 2022.
On the other hand, India’s imports from France have experienced a decline, decreasing from US$6.5 billion in FY 2018 to US$5.78 billion in FY 2022. This reversal in the trade balance has favored India, highlighting a shift in the import-export dynamics between the two countries.
India’s primary exports to France encompass a range of goods, including engineering products, such as turbojets, generating sets, and diesel engine components, valued at approximately US$2,016 million. Ready-made garments contribute around US$672 million, while petroleum products like automotive diesel fuel and aviation turbine fuel also amount to US$672 million. Additionally, drugs and pharmaceuticals make up approximately US$560 million in exports, and electronics goods, including electrical transformers and circuitry parts, contribute a similar amount of US$560 million. In FY 2021, India’s major exports to France were mineral fuels, mineral oils, and products, such as bituminous substances and mineral waxes, amounting to a total value of US$812.29 million.
On the flip side, India’s major imports from France consist of aircraft, spacecraft, and associated equipment, valued at around US$2,576 million. Electrical and electronic equipment closely follow, with imports worth US$1,456 million. Machinery, nuclear reactors, and boilers represent approximately US$896 million in imports, while optical, photographic, technical, and medical apparatus account for US$504 million. Lastly, organic chemicals contribute approximately US$280 million to India’s imports from France. India’s imports from France in FY 2021 were primarily dominated by aircraft, spacecraft, and parts thereof, totaling US$2,146.54 million. This was followed closely by imports of nuclear reactors, boilers, machinery, mechanical appliances, and their respective parts, amounting to US$829.05 million.
India-France Bilateral Trade: Key Items
India’s exports to France
India’s imports from France
France has emerged as the 11th largest foreign investor in India, accumulating a substantial amount of foreign direct investment (FDI) amounting to US$10,545 million from April 2000 to March 2023. There are more than 1,000 French businesses operating in India. Conversely, in France, there are over 200 Indian businesses operating, with a noteworthy investment stock of US$1.12 billion.
Find Business SupportIn terms of FDI inflow, India witnessed its highest influx in 2020, receiving approximately US$1,900 million. The top five sectors attracting FDI equity inflow from France to India include services (18.05 percent), cement and gypsum products (9.29 percent), air transport (including air freight) (7.59 percent), miscellaneous industries (7.24 percent), and petroleum and natural gas (7.10 percent). Collectively, these sectors represent 49.27 percent of the total equity inflow from April 2000 to December 2022, underscoring the robust economic cooperation and shared interests between India and France.
To foster even closer economic ties, Invest India and Business France have signed an MoU aimed at facilitating investors from both countries in each other’s economies. Additionally, India and France have recognized the importance of new and emerging domains, such as startups and digital technologies. They have agreed to deepen cooperation in research partnerships, innovation, and industrial applications of critical digital technologies, with a particular focus on addressing climate change and health-related challenges. Notably, India has actively participated in events like VivaTech, a prominent platform for technology, innovation, and startups in France, further strengthening the bilateral collaboration.
In India, the presence of more than 1,000 French companies is significant, contributing to a total turnover of US$20 billion and providing employment to approximately 300,000 people. These companies have made substantial investments, with a minimum stock investment portfolio of US$19 billion. Notably, 39 out of the 40 companies listed on the CAC 40 (French stock market index) have established their presence in India, highlighting the strong business engagement between the two countries.
Find Business SupportFrance and India are collaborating closely to develop smart cities in Chandigarh, Puducherry, and Nagpur. To support this initiative, France has already committed over US$2.2 billion towards India’s smart cities project, demonstrating their commitment to sustainable urban development.
Several major French companies have established a significant presence in India, including Engie, Groupe PSA, Roquette, Renault, and Schneider Electric. Furthermore, numerous prominent French groups have subsidiaries operating in India, such as BNP Paribas, Capgemini, Airbus, Dassault, Arkema, L’Oréal, Sanofi, Total, and many more. This presence reflects the diverse sectors and industries where French companies are actively engaged in India’s growing economy.
Major French Companies in India
Sector
Companies
BNP Paribas, Capgemini, Havas, Sodexo, etc.
Arkema, L’Oréal, Sanofi, Total Energies, etc.
Airbus, Dassault, Eurocopter, Safran, Thales, etc.
Bongrain, Danone, Lactalis, Lesaffre, Pernod Ricard, etc.
Crouzet, Oberthur, Safran, STMicroelectronics, Thales, etc.
Alstom, Cermex, Legris Group, Poclain, Sidel, etc.
Hager, Legrand, Schneider Electric, etc.
Faurecia, Michelin, Plastic Omnium, Renault, Valeo, etc.
France hosts over 150 Indian companies, including sub-subsidiaries, which collectively employ more than 7,000 individuals. Most Indian investments in France are concentrated in the information technology (IT) services, pharmaceuticals and biotechnologies, and hospitality sectors.
Following the UK’s exit from the European Union, France has emerged as a preferred destination for Indian businesses seeking to establish a presence in mainland Europe. The country’s attractive business environment, strategic location, and strong infrastructure have made it an appealing choice for Indian companies looking to expand their operations in the European market.
Indian Companies in France
Sector
Companies
Sintex Industries Ltd.
Software and IT services, metals, metalworking
Tata Group (Tata Sons Ltd.)
Mahindra and Mahindra Ltd.
Agri-food, agriculture, and fishing
Motherson Sumi Systems
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