The diplomatic camaraderie between India and France has flourished into a robust strategic partnership spanning multiple domains, highlighting shared values of democracy, multilateralism, and technological advancement. The recent visit of PM Modi to France, at the invitation of President Emmanuel Macron, reinforced this trajectory of collaboration, touching upon critical areas such as artificial intelligence (AI), nuclear energy, trade, security, and global governance.
The co-chairing of the Artificial Intelligence Action Summit by India and France marked a milestone in AI governance. Building upon the Bletchley Park (2023) and Seoul (2024) AI Summits, the two nations reaffirmed their commitment to ensuring AI fosters social, economic, and environmental welfare. France lauded India’s forthcoming role as the next host of the AI Summit, while both nations launched the India-France Roadmap on Artificial Intelligence, prioritising safe, open, and secure AI development. The participation of Indian startups in the French incubator Station F further strengthened Indo-French cooperation in digital innovation.
Recognising nuclear energy as a cornerstone of energy security and climate resilience, the two nations reinforced their civil nuclear collaboration. The visit included discussions on the Jaitapur Nuclear Power Plant, the world’s largest proposed nuclear plant, with French technological expertise at its core. A notable highlight was the Letter of Intent on Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs), stressing the strategic shift towards next-generation nuclear technology. Moreover, India’s Global Centre for Nuclear Energy Partnership (GCNEP) and France’s INSTN (CEA) signed an Implementing Agreement for the training of nuclear professionals, strengthening human capital in the sector.
Both leaders reiterated their commitment to a reformed United Nations Security Council (UNSC) and advocated for India’s permanent seat at the UNSC, with France expressing unequivocal support. This aligns with India’s long-standing aspiration for a greater role in global governance. Discussions also covered veto power reform in cases of mass atrocities, an issue gaining traction amidst geopolitical uncertainties.
Furthermore, the India-Middle East-Europe Corridor (IMEC), launched at the 2023 G20 Summit, was spotlighted as a game-changer in global trade logistics. France acknowledged the strategic importance of Marseille as a key transit hub, emphasising connectivity, clean energy access, and sustainable growth in the broader Eurasian landscape, a major reason behind the inaugural of India’s Consulate General in the southern French city.
India’s participation as the guest of honour at the 2024 7th Choose France Summit and the successful India-France CEOs Forum held both in November, 2024 and earlier this month underscored mutual interest in generating greater investment. Urban development emerged as a key sector, with multiple projects announced in 2024, highlighting France’s engagement in India’s infrastructure modernisation.
India’s commercial ties with France have evolved dynamically over the years, punctuated by episodic fluctuations yet dominated by an overarching trajectory of resilience. A dispassionate analysis of total trade figures from FY 2019-20 to FY 2023-24 reveals a fascinating interplay of growth spurts, contractions, and shifting trade balances, offering an insightful lens into the broader contours of India’s external economic engagements.
The India-France total trade volume exhibited a cyclical pattern, contracting in FY 2020-21 before staging a robust recovery in subsequent years. From $11.27 billion in FY 2019-20, trade plummeted to $9.13 billion in FY 2020-21 (-19.01%), reflecting the pandemic-induced global economic slowdown. However, the resilience of bilateral trade was evident in the following fiscal cycles, with a 36.14% rebound in FY 2021-22, followed by an 11.17% rise in FY 2022-23. Notably, in FY 2023-24, total trade reached a five-year zenith of $15.11 billion, registering a 9.42% growth over the previous year.
This growth trajectory, while commendable, reflects a fluctuating share in India’s overall trade basket. France’s contribution to India’s total trade hovered around 1.4% in FY 2019-20 but gradually declined to 1.2% in FY 2021-22, before stabilising at 1.36% in FY 2023-24. This suggests that while India-France trade has expanded in absolute terms, its proportional significance within India’s global trade matrix has seen marginal contraction.
India’s exports to France oscillated through an undulating cycle, dipping from $5.10 billion in FY 2019-20 to $4.78 billion in FY 2020-21 (-6.19%), only to surge to $6.64 billion in FY 2021-22 (+38.87%). The subsequent fiscal years saw continued growth, peaking at $7.61 billion in FY 2022-23 before witnessing a mild contraction to $7.14 billion in FY 2023-24 (-6.16%). This retrenchment mirrors broader global economic headwinds and potential demand slowdowns in the European market.
Conversely, India’s imports from France demonstrated an even more erratic trajectory. The nadir was reached in FY 2020-21, with imports plunging by 29.59% to $4.34 billion. However, this proved transitory, as imports rebounded sharply in the following years, culminating in a substantial $7.97 billion in FY 2023-24, a 28.55% leap from the previous year. The import growth suggests a rising Indian appetite for French industrial goods, aerospace components, and high-end technological products.
India’s trade balance with France has been a study in contrasts, shifting from a modest deficit of $1.07 billion in FY 2019-20 to a relatively narrower gap of $438.96 million in FY 2021-22. However, the deficit widened significantly in FY 2023-24, reaching $0.83 billion, driven by the sharper rise in imports vis-à-vis exports.
Yet, this imbalance pales in comparison to India’s overall trade deficit, which stood at a staggering $241.14 billion in FY 2023-24. Thus, while India’s trade engagement with France has its asymmetries, it remains a relatively well-balanced relationship in comparison to India’s engagements with larger trade partners such as China.
To address this imbalance, India must enhance its high-value export portfolio beyond traditional commodities, leveraging sectors such as renewable energy technology, pharmaceuticals, and AI-driven solutions. Policy measures should encourage French investments in India’s manufacturing ecosystem, augmenting domestic production and reducing dependency on imports. Negotiations need to be fast-tracked on the India-EU Free Trade Agreement (FTA) to eliminate tariff and non-tariff barriers that will ensure the promotion of a more balanced trade structure. India must capitalise on France’s strategic footprint in the Indo-Pacific region to enhance supply chain resilience and boost regional trade.
Acknowledging cyberspace as a strategic domain, India and France deepened their collaboration on international cybersecurity norms. The upcoming India-France Strategic Cybersecurity and Cyberdiplomacy Dialogue will address cyber threats, the responsible use of cyber tools, and sovereignty concerns in digital governance. Also, India’s Unified Payments Interface (UPI) expanded its footprint in France, a testament to India’s fintech prowess and the deepening digital partnership.
India and France also launched the Indo-Pacific Triangular Development Cooperation, supporting climate and Sustainable Development Goal (SDG)-focused projects across the region. The nations also reinforced their leadership in climate resilience through the Franco-Indian presidency of the Coalition for Disaster Resilient Infrastructure (CDRI) and the International Solar Alliance (ISA), cementing their roles as vanguards of green energy transition.
The two nations, giving a fillip to people-to-people connectivity, operationalised the Young Professionals Scheme (YPS) under the India-France Migration and Mobility Partnership Agreement (MMPA), facilitating bilateral mobility for youth and professionals. Further, discussions on a Memorandum of Understanding (MoU) on Skill Development and Vocational Education signaled intent to enhance human capital exchange.
With India and France navigating the complexities of the global order, their deepening strategic partnership reflects a blend of shared aspirations and pragmatic cooperation. From AI governance to energy security, from trade expansion to multilateral reforms, the Indo-French relationship is poised to play a defining role in shaping the geopolitical and economic contours of the 21st century. The roadmap ahead is luminous, not just in ambition but in execution, ensuring that the partnership remains resilient and future-ready.