France offers a gateway to Europe for Indian trade partnerships, with President Emmanuel Macron pitching Marseille as the entry point for a prospective India-Europe trade corridor.
During Indian Prime Minister Narendra Modi‘s visit to France this week, French President Emmanuel Macron touted Marseille as the entry point for a prospective India-Europe trade corridor through the Middle East.
The India-Middle East-Europe Economic Corridor (IMEC) is a planned railway and maritime corridor intended to enhance trade between India and Europe through Israel, the United Arab Emirates (UAE), and Saudi Arabia. It has been billed as a potential rival to China’s ‘Belt and Road Initiative’ (BRI).
France’s Role in IMEC
Macron described Marseille as ‘clearly the entry point for the whole European market‘ and emphasized that IMEC is a ‘fabulous catalyst‘ for ‘concrete projects and investment.‘ He added that France wants to play a leading role in India’s trade corridor.
Emmanuel Macron was born on December 21, 1977, in Amiens, France.
He studied philosophy at the University of Paris-Nanterre before earning a degree in public affairs from the École nationale d'administration (ENA).
Macron worked as an investment banker and later became a senior civil servant.
In 2016, he was elected President of France, becoming the country's youngest president since Charles de Gaulle.
He has implemented various economic reforms and taken a strong stance on European integration.
Challenges Ahead
However, experts acknowledged that the road to IMEC is riddled with challenges. First and foremost is IMEC’s financing. Saudi Arabia has announced an investment of $20 billion, but experts believe much more will be needed to put in place the infrastructure required to boost connectivity.
Additionally, there are concerns about India’s manufacturing capacity. China is currently the largest exporter to the EU, while India is the EU’s ninth-largest trading partner. India imports heavily from China, and there are concerns that its dependence on Chinese goods may keep European countries vulnerable to Chinese supply chains.
France-India Defense Deals
A big part of India’s trade with France is shaping up to be defense deals. Sources told DW that India is likely to acquire 26 French-made ‘Rafale fighter jets,’ adding to the 33 already in service with the Indian Air Force. Three French Scorpene submarines are also on the table.
France and India have strengthened their defense ties in recent years, with several significant deals being signed.
In 2016, France sold 36 Rafale fighter jets to India for $8.8 billion, with the first batch delivered in 2020.
The two countries also cooperate on the development of the Scorpene submarine project and the AMCA (Advanced Medium Combat Aircraft) program.
Additionally, France has offered to sell its Mirage 2000 aircraft to India, which is expected to be used for training purposes.
The arms deals amount to some €10.6 billion. ‘Indian forces don’t want Russian equipment,‘ after the debacle in Ukraine, Delhi-based defense analyst Rahul Bedi told DW. Russia has been India’s top defense exporter for years, but Bedi said the quality of French defense equipment over Russian makes it more attractive for India.
Conclusion
While progress on IMEC may be slower than desired, Modi‘s visit was a sign that India is poised to build its bilateral and business ties with France. ‘France is India’s epicenter in Europe,‘ analyst Swasti Rao said, adding that bilateral cooperation is aimed at increasing overall trade with the EU – whether or not IMEC becomes a reality.
