India, France looking at strong economic ties: French foreign trade minister

After forging close partnership in the defence domain, India and France are now looking at significantly deepening economic and trade ties especially in sectors like clean energy, new technologies and aviation, French foreign trade minister Sophie Primas has said.

At the end of her three-day visit toIndia, Primas said France is looking forward to further negotiations between New Delhi and the European Union for finalisation of a "mutually beneficial" free trade deal that could expand two-way economic engagement.

India and the EU restarted negotiations for the ambitious trade deal in June 2022 after a gap of over eight years but the talks have dragged on for a variety of reasons, including the 27-nation bloc's position on carbon tax.

"I would also like to add that, at the European Union level, we remain committed to reaching a trade deal between the EU and India, which is mutually beneficial and has ambitious sustainable development goals. We are looking forward to further talks with India at the EU level," Primas told PTI.

On India-France trade relations, the French minister said the focus now is on expansion of the economic engagement as both sides have already built a robust partnership in the strategic domain.

The French foreign trade minister visited India from November 27 to 29 during which she held talks with Commerce Minister Piyush Goyal on a range of issues, including ways to encourage more investment flows between the two countries.

"India is a fast-emerging economy with vast opportunities for French investments in India. We see major potential in aeronautic, sustainable development and emerging technologies," she said in a written response.

The trade relations between the two sides are on an upswing in the last few years but both sides are of the view that there is huge potential to enhance the engagement.

On boosting bilateral trade, Primas indicated having certain issues but did not elaborate on them.

"There are still a number of issues that we must address to support what I consider as untapped commercial potential," she said.

The French minister also called upon Indian investors to take advantage of the France-India 2047 partnership that was unveiled in July last year.

The bilateral trade between India and France has remained steady in the USD 11-13 billion range in the last five years ending financial year 2022-23.

France has emerged as a major source of FDI for India with more than 1,000 French establishments already present in India. France is the 11th largest foreign investor in India with a cumulative investment of USD 10.84 billion from April 2000 to December 2023.

The Horizon 2047 partnership was unveiled following wide-ranging talks between Prime Minister Narendra Modi and French President Emmanuel Macron with an aim to shore up bilateral ties, including in trade and investment.

India and France 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, the document mentioned.

Asked about the fast-track mechanism, which was aimed at addressing issues pertaining to investments, Primas did not give a direct reply.

"Yes, investing in talent has been a cornerstone of our strategy, and the fast-track mechanism is a big part of it. We've made substantial investments in internships, vocational training, and university reforms to ensure that educational outcomes meet the evolving needs of industry," she said.

France's tradition of excellence in mathematics and science education produces world-class talent, particularly in AI and quantum sciences, she said.

"To attract top international expertise, France offers competitive settlement options, including multi-year residence permits (Talent Passport) and a fast-track procedure for coming to France (French Tech visa)," the minister added.

Asked about the India-Middle East-Europe Economic Corridor (IMEEC) project, Primas said it will strengthen strategic supply chains and that Paris views it as a source of regional integration, peace and stability.

Billed as a pathbreaking initiative, the IMEEC envisages a vast road, railroad and shipping networks among Saudi Arabia, India, the United States and Europe with an aim to ensure integration among Asia, Middle East and West.

The IMEEC also envisages to include an electricity cable network, a hydrogen pipeline, high-speed data cable network to facilitate overall economic growth in the partner countries.

The project is also seen as an initiative by like-minded nations to gain strategic influence in the face of China's Belt and Road Initiative (BRI) that has faced increasing criticism over lack of transparency and disregard for sovereignty of the nations.

The BRI is a mega connectivity project that connects China with Southeast Asia, Central Asia, Russia and Europe.