India France Trade
India France Trade Agreement
Introduction
India and France have maintained strategic relations since 1998. The strategic partnership is anchored on the solid bedrock of deep and consistent mutual trust, abiding faith in strategic autonomy, unwavering commitment to international law; and belief in a multipolar world shaped by reformed and effective multilateralism. Both are committed to the shared values of democracy, fundamental freedoms, rule of law, and respect for human rights. Apart from these, India and France are increasingly engaged in new areas of cooperation such as maritime security in the Indo-Pacific region, counter-terrorism, sustainable growth and development among others.
India-France Trade
- From January to December 2021, the India-France bilateral trade in goods (excluding military equipment) stood at US$ 12.14 billion (+39.17% as compared to the corresponding period of the previous year).
- France is the 11th largest investor with an FDI inflow of US$ 10,389 million from April 2000 to September 2022.
Major exported items from India to France with amount & quantity
- India exported 4,495 commodities to France in FY21.
- India’s export to France increased from US$ 4.78 billion in the previous fiscal year to US$ 6.64 billion in FY2021-22.
- Major exported items from India to France include mineral fuels, mineral oils & products; bituminous substances; mineral waxes (US$ 812.29 million); followed by nuclear reactors, boilers, machinery, and mechanical appliances; parts thereof (US$ 692.99 million) in FY21.
- India exported 4,155 commodities to France during April-October 2022.
- India’s export to France stood at US$ 4.9 billion during April-November 2022.
- Major exported items from India to France include petroleum products (US$ 977 million) followed by electric machinery and equipment (US$ 371 million) etc. during April-November 2022.
Major imported items by India from France with amount & quantity
- India imported 4,124 commodities from France in FY21.
- Imports from France to India stood at US$ 5.83 billion in 2021-22.
- India's imports from France include aircraft, spacecraft, and parts thereof (US$ 2,146.54 million); followed by nuclear reactors, boilers, machinery, and mechanical appliances; parts thereof (US$ 829.05 million) in FY21.
- India imported 3,681 commodities from France during April-October 2022.
- Imports from France to India stood at US$ 3.6 billion during April-November 2022.
- India's imports from France include aircraft, spacecraft, and parts thereof (US$ 884 million); followed by petroleum products (US$ 407 million), etc. during April-November 2022.
Recent Trends & developments
- India and the EU restarted talks for a comprehensive free trade agreement earlier this year after a gap of nine years. The two sides concluded the first round of negotiations for Bilateral Trade and Investment Agreements (BTIA), including the Geographical Indicators (GI) on 1 July.
- The 18th Joint Economic Committee meeting, held virtually between the two countries on 27 November 2020, led to the signing of a bilateral ‘Fast Track Mechanism’ for investors.
- India and France have signed an MoU on 25th January 2022 with a scope for cooperation in health research. Council of Scientific and Industrial Research, CSIR, and Institut Pasteur, France will jointly research and focus on emerging and re-emerging infectious diseases and inherited disorders and enable the delivery of effective and affordable healthcare solutions not only for the people of India and France but for the global good.
- India-France Space Pact: India and France have agreed on setting up a bilateral strategic dialogue on space issues.
- In November 2022, India and France discussed the defence collaboration and explored further opportunities under AtmanirbharBharat.
Economic Cooperation
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 FDI stock of US$ 10,389 million from April 2000 to September 2022, which represents 1.6% of the total FDI inflows into India. There are more than 150 Indian companies operating in France (including sub-subsidiaries), employing more than 7,000 persons.
39 of 40 companies listed on the French stock exchange are conducting their business operations in India. The bilateral trade between the two countries is on an upswing and the Free Trade Agreement (FTA) signing would lead to a significant rise in trade.
Conclusion
India and France have important bilateral investments and trade and commercial cooperation, particularly in sectors involving IT corridors, capital and trade exchanges, skill development, etc. In addition, the two countries are successfully cooperating in the areas of smart cities, railways, tourism, food processing, and renewable energy. Both countries have maintained significant relations in various sectors and are working towards achieving new heights in trade and economic relations.
Contacts
- Embassy of India, Paris, France
Address: 13-15 rue Alfred Dehodencq, 75016 - Paris, France; Tel: +33 1 40 50 71 71
Mr. Jawed Ashraf (Ambassador); Email: amb.paris@mea.gov.in
Dr. K.M. Praphullachandra Sharma (Deputy Chief of Mission); Email: dcm.paris@mea.gov.in - Embassy of France in India
Address: 2/50-E Shantipath, Chanakyapuri, New Delhi 110 021; Tel: 91 (11) 4319 6100
Mr Emmanuel LENAIN (Ambassador)
Mr Damien SYED (Deputy Head of Mission)
Partners
