Modi’s Bastille de Paris visit will symbolize many things

Modi’s upcoming visit to France will be his third after 2019. An essential aspect of the visit will be to renew the bilateral strategic partnership and draft a roadmap for the next 25 years. It covers various fields including defence, space, civil nuclear cooperation. Climate change, education and cultural exchange. Along with France’s position as a leading partner in India’s defense industry, the two countries share a similar vision in the Indo-Pacific region and the global fight against terror and cybercrime.

In terms of trade and investment, bilateral trade between India and France is set to cross the €15 billion mark for the first time in 2022, surpassing the 2025 target set during President Emmanuel Macron’s state visit to India in 2018. Trade relations have also been promoted through the air route. India recently ordered about 250 aircraft from Airbus, followed by IndiGo placing a record order of 500 A320 aircraft from the same supplier, which is owned by a European aeronautics and space agency in which France has a significant stake.

Ongoing talks between India and EU free trade The Agreement (FTA) will play an important role in increasing trade between the two countries. Several rounds of talks have taken place to find ways to reduce import barriers, enhance investment protection and recognition of geographical indications. Such a comprehensive trade agreement will give a big boost to bilateral trade and investment between India and the European Union.

French companies have made substantial investments in India, with over 700 companies operating in various sectors and contributing to 400,000 jobs. France is one of the top foreign investors in India, with a total stock of €11 billion in foreign direct investment (FDI). Given India’s rapid economic growth, digitization, growing middle class and talent availability, the country represents a high priority market for French companies. Also, India’s emergence as a manufacturing and supply hub offers an attractive alternative to China.

While major French conglomerates already have a presence in India, small and medium-sized companies are increasingly setting up operations in the country through direct investment or acquisitions. Acquisitions serve as a strategic approach for companies to gain market share, acquire talent and expand Indian market,

French investments in India are focused on the defense and aerospace sectors, with companies such as Airbus, Safran, Thales, Dassault Aviation and Naval Group playing a significant role. Other recent investments include TotalEnergies, which has committed over $3 billion to support India’s energy transition, and Schneider Electric, which acquired L&T’s electricals and automation business for $2 billion. Paris airport The group also acquired a 49% stake in Indian airport operator GMR Airports worth around $1 billion.

One of the reasons India is such an attractive business destination is its vast talent pool. French IT services company Capgemini employs around 200,000 people in India, making it the largest French employer here. Indian leaders are increasingly occupying top positions in large French corporations, exposing Indian talent.

France is actively engaged in India’s ‘Make in India’ program and is contributing significantly to our infrastructure development. As India looks for opportunities to develop supply chains, French companies are eyeing the country as an important hub. L’Oréal operates two manufacturing units in Pune and Baddi to meet the domestic demand. Global transportation company Alstom is building a local supply chain to facilitate product distribution; With an eye on global exports, it currently operates six industrial units, several engineering centers and two depots.

Some French companies also work as partners of the Indian government. Idemia, a leading French identity technology firm, partners with the government Jan Dhan Facial recognition technology has been implemented in the Yojana and Aadhaar programs and more recently in DigiYatra, a technology initiative by India’s Ministry of Civil Aviation to enhance the travel experience of air travelers.

Around 200 Indian companies have invested in France in automotive, pharmaceuticals, biotechnology, IT and other sectors. recently, biocon Acquired Viatris, an American company and now has three manufacturing units in France.

The Indo-French partnership has flourished over the last 25 years, with ties deepening in various fields. The anniversary celebrations and Prime Minister Modi’s visit to France underline the importance of this partnership and the joint commitment to further strengthen bilateral ties in the years to come.

Payal S Kanwar is the director general of the Indo-French Chamber of Commerce and Industry

UPDATE: July 12, 2023, 11:49 PM IST