India-France Business Summit: In today’s world order, which has obviously gone through a change after the pandemic and the Ukraine conflict, the unpredictability has increased. While the world is largely polarised on geopolitical issues, geo-economical issues present quite different dynamics. In that scenario, drawing a hard line to divide countries into camps is just a naive move. The analysis of permeability is always necessary. And the relations between India and France are no different from that.
India-France Business Summit: Piyush Goyal visited France
Recently, Union Trade and Commerce Minister, Piyush Goyal visited France. He was there to attend the India-France Business Summit. Goyal addressed the summit, held bilateral talks with the French Trade Minister, and addressed the Indian diaspora in France.
During the India-France Business Summit and CEOs Roundtable, Goyal pitched India’s economic progress for investment to India. He said, “Huge delta of opportunities are there in India, and that we are one the largest consumers of goods and services.
He went on to say that exports of goods and services are growing by over 50 percent, and the country hopes to continue this growth trajectory. It hopes to see our exports of goods and services triple from USD 765 billion to USD 2 trillion by 2030.”
The facts are mesmerising. And the way India is pursuing its economic policy is actually commendable. Countries across the world are looking for opportunities to invest in India.
Discussions on the India-EU FTA
Speaking to the French Trade Minister, Piyush Goyal discussed the priority areas of the Free Trade Agreement between India and the European Union. It is worth noting that India and the EU concluded the 4th round of FTA negotiations last month.
Stressing the concrete bilateral trade relations with France, Mr. Piyush Goyal said that the Rafale and recent Airbus deal added more value to the partnership.
Business Summit: Growing Trade between India and France
If we look at the trade between India and France, the picture gets clearer. India’s exports to France stood at US$ 4.9 billion during April-November2022,2 while imports from France to India stood at US$ 3.6 billion during April-November 2022.
The total bilateral trade during this period stood at $8.5 billion. France has become a significant contributor of foreign direct investment (FDI) to India, with over 1,000 French companies already established in the country. As of September 2022, France ranks as the 11th largest foreign investor in India, with a total FDI stock of US$ 10,389 million, representing 1.6% of the total FDI inflows received by India since April 2000.
As the trade between the two countries is on the upswing, the Free Trade Agreement will further soar the trade.
Goal of becoming the 3rd largest economy
While addressing the India diaspora, Piyush Goyal announced that India will become the 3rd largest economy until 2047, i.e., when India will be celebrating 100 years of its independence. The aim is big, as it will require a 10-fold increase in GDP within 24 years.
Citing India’s export performance of $750 billion in 75 years, Goyal opined that India’s trade trajectory is on the rise. Apart from that, he also emphasised India’s role as a global pharmacy.
Goyal expressed India’s dedication to its alliance with France and urged the Indian diaspora to play a significant role in advancing this partnership.
A foundation for the future
Currently, India is garnering investment from across the world. It becomes more significant during this time when the world is going through an economic slowdown. Countries across the world are dealing with economic headwinds that have resulted in inflation and unemployment, among others.
On the other hand, India is also facing the heat but has still managed to hover over the tides. So, seeking investment and solidifying Indian trade with the world today is going to fructify tomorrow when economic progress will be back on track. At that time, Indian trade and subsequently the economy will bounce back to achieve a new benchmark.
So, these bilateral and multilateral summits and an approach to attracting investment have a two-fold impact. On one hand, they contribute to getting global economic progress back on track, and on the other, they create a foundational framework for future trade and investment.
Also Read : US Policies are Driving France towards China at India’s Expense
Scepticism for France
There are concerns that France had earlier tried to sabotage India’s G20 presidency when it refused to sign a communique unless Russia was condemned for its ongoing conflict. How can a country be trusted when it and its allies try to impose their problems on others and compromise their concerns?
But as I previously said, the current world order is not simple enough to be bifurcated into camps. The geopolitical realities are different from the geoeconomic practicalities. This can be understood by the recent visit of the French President, Emmanuel Macron, to China.
Despite knowing the fact that China is the biggest competitor and rival of the western camp and is often considered as the supporter of Russia, Macron discussed increased bilateral trade with Beijing. Even so, Macron criticised the US and appealed to the EU that Europe should sideline itself from US and China’s geopolitical tussles over Taiwan.
Macron visited China with Ursula von der Leyen, the President of the European Commission, who herself introduced the concept of ‘de-risking’ days before the visit. She knew that decoupling was not possible because EU-China trade is huge. Trade is the backbone of the European economy, and hence, whatever the geopolitical conditions, decisions should be primarily based on geoeconomics.
Similarly, India is looking to enhance trade relations with countries across the world. Although it does not mean undermining geo-political interests. Instead, primacy is given to economic interests. To that extent, France is a crucial partner as trade across domains is ongoing between India and France.
Also Read : Macron-Modi-Biden: France gives India an edge in dealing with the USA
Optimistic India-France Business Summit
The visit is surely going to reap more investment from France in India. However, it is not only India that is going to benefit. When I describe the new order, all the countries are woven into that framework. The de-risking policy will require diversification of trade to reduce Chinese dependency in the long-term. India’s big market, infrastructure development and ease of doing business are creating favourable conditions for France’s diversification of Chinese dependence.
So, the visit of Union Minister Piyush Goyal and the India-France Business Summit are definitely going to bolster trade ties between both countries.
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