The India-France bilateral relations are on the cusp of a transformative change with Prime Minister Narendra Modi and President Emmanuel Macron coining an ambitious pathway of bilateral cooperation in defence, security, civil nuclear, science and technology, energy, trade and investment, space, climate action, people to people ties, all of which constituted Modi’s delegation level talks with Macron at the Elysee Palace. A paradigm shift in relations is being envisaged, ahead to the next 25 years for the bilateral journey together to 2047 and beyond, that includes celebration of the centenary of India’s Independence, the centenary of India-France diplomatic ties and half a century of the strategic partnership.
“The talks with my friend, President Emmanuel Macron were very productive. We reviewed the full range of India-France relations. I am particularly enthusiastic about deepening cooperation in futuristic sectors like green hydrogen, renewable energy, AI, semiconductors and more,” said Modi in a tweet.
Off course, for the Prime Minister and India at large, the unprecedented gesture of being invited to and attending the Bastille Day Parade as Guest of Honour with a 241 member tri-service Indian armed forces contingent signalling the vibrancy and power of the bilateral ties, or for that matter being bestowed with the Grand Cross of the Legion of Honour, the highest civilian honour of France, were not just mere optics. They underline the strength of a relationship based on understanding of India’s need for Pokhran nuclear tests, upgradation of the relationship to a strategic partnership in 1998, resilience in the darkest storms and a strong mutual desire to take this to the next level, building on a multifaceted cooperation that cuts across trade, space, civil-nuclear domain, technology, cybersecurity, climate change, renewable energy, reorientation of India’s security partnership in line with Make in India and Atmanirbhar Bharat objectives and supply chain integration.
The intent has played out in the adoption of a roadmap to set the course for the bilateral relationship up to 2047 which commits India and France to building collaborations that empower their citizens and ensure their full participation in the digital century. The agreement executed between India’s NPCI International Payments Limited (NIPL) and France’s Lyra Collect to implement the Unified Payment Interface (UPI) in France and Europe is reaffirmation of a shared belief in the power of digital public infrastructure (DPI) approach for the development of open, free, democratic and inclusive digital economies and digital societies. The payment mechanism is in its last phase of production and will go live by September, 2023 with the iconic Eiffel Tower, Paris as the first merchant in France to accept UPI. “The agreement between India and France on the UPI takes the Indian digital drive on the world map, making the INR a currency of international choice. ‘It is a great feeling to be doing digital transactions in France in Indian rupee,” said industry body Assocham’s Secretary General Deepak Sood.
India and France have also advanced multi-stakeholder exchanges through the InFrastructures (India France Structures) and InFinity (India France Innovation in Information Technology) platforms which will explore how these joint projects in DPI can have far reaching impact across multiple sectors. As part of the joint DPI cooperation efforts, India and France have mutually identified potential high-impact initiatives in the areas of mobility, commerce and culture, as initial focus areas to showcase the significant benefits of interconnectedness between platforms accomplished by leveraging open protocols.
While the Modi visit did not witness any breakthrough on enhancing bilateral trade and investment, the two countries are intensifying their bilateral dialogue in order to resolve as soon as possible the difficulties encountered by Indian and French exporters and investors in their respective markets, particularly in the context of the bilateral fast track procedure. From January to December 2021, the India-France bilateral trade in goods (excluding military equipment) stood at USD 12.14 billion (+39.17 per cent) as compared to the corresponding period of the previous year). France is the 11th largest investor with an FDI inflow of USD 10,389 million from April 2000 to September 2022, as per industry data.
To enhance cross-investment, India and France are encouraging Indian and French companies to strengthen their ties and develop activities in both countries, notably with the aim of increasing the presence of French investors in India and Indian investors in France. To this end, Invest India and Business France have signed an MoU for cooperation in facilitating investors from France and India in each other’s economies.
An important exercise in this context was the joint address by Modi and Macron to a group of leading Indian and French CEOs from diverse sectors including aviation, manufacturing, defence, technology, energy. Modi tweeted his meeting with the global CEO of Chanel Leena Nair. “It’s always a delight to meet a person of Indian origin who has made a mark at the world stage,” said Modi who discussed ways to further boost skill development among artisans and to make Khadi more popular. Modi acknowledged the role played by these industry leaders in strengthening bilateral relations and promoting economic cooperation between India and France and encouraged the CEOs to utilise the investment opportunities in India and be a part of India’s growth story which is unfolding in renewables, startups, pharma, IT, digital payments, infrastructure and various initiatives undertaken to foster business.
Taking forward the Partnership Agreement on Migration and Mobility, which came into force in 2021 towards enhancing the mobility of students, graduates, academics, researchers, professionals and skilled workers, France has reaffirmed its ambition to welcome 20,000 Indian students by 2025 and raise this ambition to 30,000 in 2030. In another significant development, Modi announced a longer post study work visa for Indian students in France which has decided to grant a long-term five-year visa for students pursuing a masters degree in their country. France will also create “International Classes” in French universities and other higher education institutions, where Indian students would be trained in French language and academic topics. It would allow them to then join Bachelor programmes in French language. The French government will experiment the creation of such classes while the Indian government will promote it within the secondary education system of India.
The Modi visit has also culminated in deepening of strategic ties between India and France with the two countries stepping up co-development and co-production of advanced defence technologies, including for the benefit of third countries. The timely delivery of the 36 Rafale ordered by India, extension of Defence cooperation in advanced aeronautical technologies in the future by supporting the joint development of a combat aircraft engine are steps that strengthen the spirit of trust
that prevails between India and France in the sharing and joint development of critical components and technology building blocks. A contract between Safran helicopter engine and HAL for the transfer of technology of forging and castings for the Shakti engine is in line with the French commitment to support technology transfer and Make in India. This will get further boost with both countries are also working towards adopting a roadmap on defence industrial cooperation.
Recognising the increasing focus of ties to new and emerging domains, including the startup industries, India and France agreed to further deepen their cooperation to promote research partnerships, innovation and industrial applications of critical digital technologies while also focusing on the deployment of these technologies to address issues related to climate change and health. India has had a very robust participation, for instance in VivaTech, which is one of the signature forums of participation by technology, innovation, and startup companies in France.
To make digital, innovation and startup partnership a new area of growth and based on the Indo-French Road map on Cyber security and Digital Technology adopted in 2019, the two countries are pursuing an ambitious bilateral cooperation on advanced digital technologies, particularly in the fields of supercomputing, cloud computing, Artificial Intelligence and quantum technologies.