Shared Understanding: India-France Ties

General Studies Paper -2

Context: India and France share a robust strategic partnership based on mutual respect, shared values, and cooperation on global challenges, reaffirmed during PM Modi’s recent visit to France.

India-France Relationship

Historical Background:

• Diplomatic ties between India and France date back to 1947 when France recognized India’s independence.
• The relationship transformed significantly, culminating in the establishment of a strategic partnership in 1998.
• France was among the first Western nations to support India after its nuclear tests, recognizing it as a responsible nuclear power.

Trade and Economic Partnership:

• France is India’s 11th largest trading partner in the European Union, with bilateral trade exceeding $12 billion in 2023.
• French companies like Airbus, Dassault, Renault, and Michelin have significant operations in India, while Indian IT firms like TCS, Infosys, and Wipro maintain a strong presence in France.
• At the 14th India-France CEOs Forum, PM Modi emphasized increasing investments in digital technology, green energy, and artificial intelligence.

Defense Cooperation:

• Defense Industrial Roadmap: Aimed at co-designing and co-developing military hardware.
• Advanced Artillery & Technology Transfer: Collaboration on advanced weaponry, joint military exercises (e.g., Varuna), and defense technology sharing.
• France-India Defence Startup Excellence (FRIND-X): Initiative under HORIZON 2047 and the India-France Defence Industrial Roadmap.
• Rafale Fighter Jets: India procured 36 Rafale jets under a 2016 deal, with a recent agreement for Rafale-M jets to operate from India’s aircraft carriers, set for delivery by 2029.
• Scorpène-Class Submarines: France assisted India in building Scorpène-class submarines and plans integration of Air Independent Propulsion (AIP) under Project 75, along with a possible Integrated Combat System (ICS) in future P75-AS submarines.

Space Collaboration:

• ISRO and CNES collaborate on satellite launches and joint research, enhancing space technology applications.

Strategic & Geopolitical Cooperation:

• Shared vision for a free, open, and inclusive Indo-Pacific; strengthened naval collaboration to counter China’s influence.
• France supports India’s bid for a permanent UN Security Council (UNSC) seat and its membership in the Nuclear Suppliers Group (NSG).
• India-Middle East-Europe Economic Corridor (IMEC): A MoU signed at the G20 Summit to facilitate European market access, technological collaboration, and counter China’s Belt and Road Initiative (BRI).

Energy & Climate Cooperation:

• International Solar Alliance (ISA): Co-founded by India and France in 2015 to promote solar energy worldwide.
• Collaboration on nuclear energy projects including nuclear reactors at Jaitapur, Maharashtra.
• Agreements for Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs).
• France supports India’s renewable energy ambitions by investing in hydrogen energy and sustainable urban development.
• India-France Indo-Pacific Triangular Development Cooperation: Supports climate and SDG-focused projects in third countries in the Indo-Pacific.

Counterterrorism & Financial Security:

• Joint efforts against terrorism through designations of UN-sanctioned individuals and organizations.
• Commitment to Financial Action Task Force (FATF) standards and participation in No Money for Terror (NMFT) initiatives.

Health Infrastructure:

• Cooperation in digital health, antimicrobial resistance, and exchange of health professionals under the Indo-French Life Sciences Sister Innovation Hub.
• Centre for Cellular and Molecular Platforms (C-CAMP) collaboration for biotech innovation.

Cultural & Educational Exchanges:

• France remains a popular destination for Indian students, with over 10,000 currently studying there.
• Opening of the Consulate General of India in Marseille to strengthen cultural and business ties.
• Young Professionals Scheme (YPS) under the India-France Migration and Mobility Partnership Agreement (MMPA).

Concerns in India-France Relations

• Trade & Economic Frictions:
• Lack of a Free Trade Agreement (FTA): France supports an ambitious EU-India trade deal, but differences over tariffs, labor laws, and environmental clauses have delayed progress.
• Agricultural & Dairy Disputes: France sees India’s protectionist policies as a hurdle, particularly regarding dairy and wine market access. India seeks fewer restrictions on IT services and skilled labor mobility.
• Digital Taxation & Data Protection: France’s digital tax policies affect Indian IT firms, while India’s data localization rules raise concerns for French businesses.
• Technology Transfer Issues:
  • Barriers to Technology Transfer: India’s Make in India and Aatmanirbhar Bharat push for technology transfer, while France remains cautious, particularly in military technology.
  • Delays in Project Implementation: Indo-French defense projects, especially naval collaborations, have faced delays, raising concerns over cost escalations.
• Geopolitical Challenges:
  • Russia-Ukraine War: India’s neutral stance contrasts with France’s pro-Western approach, impacting defense trade and energy security.
  • Multilateral Cooperation Issues: Divergences on UNSC reforms, climate change policy, and energy transitions require negotiation.
  • Rise of Protectionism & Visa Issues: Stricter work and study visa rules affect business mobility.
  • China Factor & Indo-Pacific Strategy: France balances ties with China, sometimes conflicting with India’s deepening QUAD and AUKUS engagements.

Conclusion & Way Forward

• While India and France share a strong, time-tested relationship, geopolitical divergences, defense technology issues, and trade frictions require diplomatic foresight and pragmatic solutions.
• Strengthening defense collaboration, economic cooperation, and multilateral coordination is crucial.
• Both nations are well-positioned to play a key role in regional and global stability.