India France Trade
India France Trade Agreement
Last updated: Mar, 2024
Introduction
India and France have maintained 25 years of 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, the 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, counterterrorism, sustainable growth, and development among others.
India-France Trade
- Trade relations between India and France have witnessed steady growth, with bilateral trade reaching an impressive US$ 13.81 billion in 2022-23, marking a significant 7.72% increase from the previous year.
- France has emerged as the 11th largest investor in India, with an FDI inflow of US$ 10.76 billion from April 2000-September 2023.
- From January-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).
Major exported items from India to France with amount & quantity
- India exported 4,712 commodities to France in FY23.
- India’s export to France stood at US$ 7.61 billion in FY23 and US$ 6.64 billion in FY22.
- Major exported items from India to France include petroleum products (US$ 1.29 billion); followed by nuclear reactors, boilers, machinery, and mechanical parts thereof (US$ 974 million), electrical machinery and equipment (US$ 704 million), pharmaceutical products (US$ 447 million), and articles of apparel and clothing accessories, not knitted or crocheted (US$ 390 million) in FY23.
- India’s export to France stood at US$ 4.83 billion during April-November 2023.
- Major exported items from India to France include engineering goods (US$ 1.42 billion); followed by petroleum products (US$ 871 million), drugs and pharmaceutical products (US$ 412 million), electronic goods (US$ 390 million) and RMG all of textiles (US$ 389 million) during April-November 2023.
Major imported items by India from France with amount & quantity
- India imported 4,253 commodities from France in FY23.
- Imports from France to India stood at US$ 6.20 billion in FY23 and US$ 5.78 billion in FY22.
- India's imports from France include aircraft, spacecraft, and parts thereof (US$ 1.75 billion); followed by nuclear reactors, boilers, machinery, and mechanical parts thereof (US$ 933 million), electrical machinery and equipment (US$ 505 million), petroleum products (US$ 410 million), and optical, photographic cinematographic measuring, medical or surgical instrument and apparatus parts and accessories thereof (US$ 237 million) in FY23.
- Imports from France to India stood at US$ 4.49 billion during April-November 2023.
- Major imported items from France to India include nuclear reactors, boilers, machinery, and mechanical parts thereof (US$ 1.19 billion); followed by aircraft, spacecraft, and parts thereof (US$ 1.12 billion), electrical machinery and equipment (US$ 367 million), petroleum products (US$ 185 million) and optical, photographic cinematographic measuring, medical or surgical instrument and apparatus parts and accessories thereof (US$ 167 million) April-November 2023.
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 July 1, 2023.
- The 18th Joint Economic Committee meeting, held virtually between the two countries on November 27, 2020, led to the signing of a bilateral ‘Fast Track Mechanism’ for investors.
- India and France have signed an MoU on January 25, 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 Atmanirbhar Bharat.
- As part of Prime Minister Mr. Narendra Modi’s historic state visit to France from July 13-14, 2023, strategic deliberations were held during the 11th India-France CEO Forum to encourage the utilization of investment opportunities in these sectors and foster greater manufacturing and ease of doing business.
- India and France will develop new generation military equipment as part of a long-term roadmap agreed upon during Prime Minister Mr. Narendra Modi’s visit to Paris, French Ambassador to India Mr. Emmanuel Lenain said.
- France and India are making remarkable strides in the field of nuclear energy, with a focus on the Jaitapur 6-EPR power plant project. This ambitious endeavour aims to provide reliable, affordable, and low-carbon energy through the construction of six cutting-edge European Pressurized Reactors (EPRs) in Jaitapur. In addition, both countries have joined forces to explore the potential of Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs).
- India and France have agreed to use Unified Payments Interface (UPI) in France. In the coming days, it will begin from the Eiffel Tower, which means Indian tourists will now be able to pay in rupees.
- Prime Minister Mr. Narendra Modi was on an official visit to France from July 13-14, 2023, following an invitation from President of France Mr. Emmanuel Macron for the French National Day, or Bastille Day celebrations in Paris. The 25th anniversary year of India-France strategic partnership was commemorated during this visit, symbolizing a robust collaboration in various domains, including defence, space, civil nuclear, blue economy, trade, investment, education, culture, and people-to-people ties. Notable outcomes of the visit include:
- MoU on Cooperation in the field of Digital Technologies between MeitY and French Ministry of Economy.
- Letter of Intent on the New National Museum and Cooperation on Museology.
- MoU on Technical Cooperation between Direction-Générale d’Aviation Civile, France and Airports Authority of India in the field of Civil Aviation.
- MoU on Technical arrangements for Civil Aviation Security (AVSEC) between India and France.
- Letter of Intent between Prasar Bharati and France Media Monde.
- MoU between Invest India and Business France.
- India-France joint Earth Observation mission TRISHNA implementing arrangement.
- Maritime Domain Awareness short-term programme implementing arrangement.
- Agreement on Conjunction Analysis and Evaluation Service: Alerts and Recommendations (CAESAR) and use of Exert Modules of JAVA for Assessment of Conjunction (JAC) software.
- Joint Declaration between ISRO and CNES Concerning Joint Developments in the field of Launchers.
- Letter of Intent between India and France for Cooperation in the field of Health and Medicine.
- MoU between the National Institute of Ocean Technology (NIOT), Ministry of Earth Sciences (MoES), Chennai and Instiut Français de Recherche pour l’exploitation de la Mer(IFREMER).
- Head of Agreement (HoA) between Indian Oil Corporation Limited and M/s Total Energies Gas and Power Ltd (Total Energies) to establish a long-term LNG Sale and Purchase Agreement (SPA).
- The Department of Administrative Reforms and Public Grievances, under the Ministry of Personnel, Public Grievances, and Pensions, Government of India, joined hands with the M/o Public Sector Transformation & the Civil Service of the French Republic by signing a Letter of Intent for Cooperation in the field of Public Administration and Administrative Reforms.
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$ 10.76 billion from April 2000-September 2023, which represents 1.64% 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. Thierry Mathou (Ambassador)
Mr. Damien Syed (Deputy Head of Mission)
Partners
