india france relations
Prime Minister Narendra Modi will be on a tour of France and Slovakia from 13 to 18 June. Relations between the countries will be strengthened in this journey. Many agreements will be signed. All partner countries are going to benefit from these agreements. Come, let us understand what India and France buy from each other? What do you sell?
Prime Minister Narendra Modi’s visit to France is not just diplomacy. Its direct impact is on defence, trade, technology, energy and investment. Relations between India and France have been strong for many years. Both countries consider each other as reliable partners. The special thing is that France has become a big strategic friend of India in Europe. France is not just a defense supplier to India. It is also an important partner in aerospace, nuclear energy, infrastructure, clean energy and high technology. On the other hand, India is a big market for France. It gets energy products, medicines, machinery, electronic goods and textiles from India.
What does India buy from France?
India’s biggest purchases from France are in the defense and aerospace sector. As soon as the name of France comes among common people, the first thing that comes to mind is Rafale fighter jet. Earlier, India had also purchased Mirage-2000 from France. Scorpene submarines are also a great example of India-France defense cooperation, but the purchase is not limited to just fighter planes. India also buys aircraft and space-related parts, machinery, electrical equipment, navigation systems, medical and optical equipment, chemical products and many high-value industrial goods from France. This is the reason why the trade of both the countries does not depend only on defence.
The following items were prominent among India’s major imports from France in the financial year 2023-24.
- Aircraft, Spacecraft and their parts
- Machinery, Boilers and Mechanical Equipment
- Electrical Machinery and Equipment
- Optical, Medical and Surgical Instruments
- Many types of chemicals are involved.
Imports related to aircraft and spacecraft topped the list based on data from the Ministry of Commerce, Government of India.
India’s big purchases from France in defense sector
France is one of India’s most important partners on the defense front. India purchased Rafale fighter aircraft from France. Mirage-2000 has already been a part of the Indian Air Force. Cooperation on Scorpene class submarines is also part of this relationship. Apart from this, cooperation has also increased in the fields of missiles, avionics, engine technology, aircraft systems and guided weapons. This is why when PM Modi goes to France, the discussion about defense deals intensifies. Often the focus remains only on fighter jets, whereas the real picture is much bigger than this. This also includes aerospace technology, joint production, maintenance, spare parts and tech transfer.
What does India sell to France?
India also sells many important products to France. The notion that trade is only one-way is wrong. Goods going from India to France include energy products, pharma, machinery, electrical goods, clothing and other industrial products.
The major products sent from India to France in the financial year 2023-24 were as follows.
- Mineral fuel, mineral oil and related products
- Machinery and Mechanical Equipment
- Electrical Machinery and Equipment
- pharmaceutical products
- Readymade Garments and Fabrics
In simple words, India sells oil related products, medicines, machines, electronic goods and clothes to France. Not only this, according to media reports, footwear, smartphones, jewellery, aerospace parts and chemical products also go to France from India.
Latest import-export figures
According to available public goods trade data, trade between India and France has grown steadily. These figures are for the financial year 2023-24.
Total Bilateral Trade: more than 15 billion dollars
India’s exports to France: 7.14 billion dollars
India’s imports from France: approximately $7.9 billion
Total bilateral trade in the financial year 2022-23: more than 13 billion dollars
It is clear from these figures that the trade is quite balanced. India’s exports are also strong. Imports are more, but the difference is not very big. That means India-France trade is not based only on purchase.
Not only trade, investment is also increasing
Another major aspect of the relationship between India and France is investment. French companies are operating in India in the auto, energy, engineering, electric appliances and aerospace sectors. On the other hand, Indian companies are also present in France in IT, auto component, steel and tech sectors. According to media reports, FDI from France to India has also increased significantly in the last few years. It is clear from this that the relationship between the two countries has gone beyond buying and selling and has reached production and investment.
What are the possibilities ahead?
India-France relations may deepen further in the coming times. Joint manufacturing may increase in defense production. Cooperation on aerospace and engine technology may increase. There are also new possibilities in areas like clean energy, AI, semiconductor, cyber and maritime security. PM Modi’s visit to France should be seen in this larger frame. This visit is not just a diplomatic courtesy. It is also preparation for the next phase of defence, trade, technology and investment.
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