France’s Foreign Trade Minister Sophie Primus said that after forging a close partnership in the defense sector, India and France are now considering significantly deepening economic and trade ties, particularly in areas such as clean energy, new technology and aviation. He said he is doing so.
Prime Minister Primus said at the end of a three-day visit to India that France is seeking further cooperation between New Delhi and the European Union to conclude a “mutually beneficial” free trade agreement that could expand two-way economic engagement. He said he was looking forward to the negotiations.
India and the EU resumed negotiations on an ambitious trade deal in June 2022 after a hiatus of more than eight years, but negotiations have dragged on for a variety of reasons, including the 27-nation coalition’s position on carbon taxes.
“I would also like to add that at European Union level, we remain committed to a trade agreement between the EU and India that is mutually beneficial and has ambitious sustainable development goals. , we look forward to further discussions with India ‘at the EU level,’ Primus said. P.T.I..
Trade relations between India and France
On India-France trade relations, the French minister said the two countries are now focused on expanding their economic engagement as they already have a strong partnership in strategic areas.
The minister visited India from November 27 to 29, during which he held talks with Commerce Minister Piyush Goyal on various issues, including ways to facilitate investment flows between the two countries.
“India is a fast-growing economy and there are enormous opportunities for French investment in India. We see great potential in aviation, sustainable development and emerging technologies,” the prime minister said in a written response. I’m finding out,” he said.
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Commercial ties between the two countries have been on the rise in recent years, and both sides say there is great potential for increased engagement.
Regarding the promotion of bilateral trade, Primus indicated that there were specific issues, but did not elaborate on them.
“There are still many issues that need to be addressed to support what I consider to be untapped commercial potential,” she said.
2047 partnership between France and India
The French minister also called on Indian investors to take advantage of the France-India 2047 partnership announced in July last year.
Bilateral trade between India and France has remained stable in the range of USD 11 billion to USD 13 billion for the past five years till FY 2022-23.
France has emerged as a major source of FDI into India, with over 1,000 French facilities already present in India. France is the 11th largest foreign investor in India, with cumulative investments of $10.84 billion from April 2000 to December 2023.
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The Horizon 2047 partnership was announced after extensive talks between Prime Minister Narendra Modi and French President Emmanuel Macron aimed at strengthening bilateral relations, including trade and investment.
About the fast track mechanism
India and France have engaged in bilateral dialogue to resolve as soon as possible the difficulties faced by Indian and French exporters and investors in their respective markets, particularly in relation to bilateral “fast track” procedures. It is mentioned in the document that it is being strengthened.
Primus did not directly respond to questions about the fast-track mechanism aimed at addressing investment issues.
“Yes, investing in people is a cornerstone of our strategy and fast-track mechanisms are a big part of that. We have invested heavily in internships, vocational training and university reform, which is what industry needs,” she said.
“France’s tradition of excellence in mathematics and science education produces world-class talent, particularly in the fields of AI and quantum science,” she said.
The minister said: “To attract top international expertise, France has developed competitive payment options, such as multi-year residence permits (Talent Passport) and fast-track procedures to come to France (French Tech Visa).” “We provide that,” he added.
India-Middle East-Europe Economic Corridor (IMEEC) Project
Asked about the India-Middle East-Europe Economic Corridor (IMEEC) project, Primus said it will strengthen strategic supply chains and that Paris sees it as a source of regional integration, peace and stability.
Touted as a landmark initiative, IMEEC envisions a vast road, rail and maritime network between Saudi Arabia, India, the US and Europe, with the aim of ensuring the integration of Asia, the Middle East and the West. There is.
IMEEC also envisions incorporating power cable networks, hydrogen pipelines, and high-speed data cable networks to promote overall economic growth in partner countries.
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The project also comes as like-minded countries seek to gain strategic influence in the face of China’s Belt and Road Initiative (BRI), which faces growing criticism for its lack of transparency and disregard for national sovereignty. It is also seen as an initiative to
One Belt, One Road is a mega-connectivity project linking China with Southeast Asia, Central Asia, Russia, and Europe.
