India and France are rapidly expanding their economic partnership, with bilateral trade more than doubling over the past decade to reach €12.67 billion in 2024–25, underscoring the growing depth and diversification of ties between the two strategic partners.
Within the European Union, France is India’s third-largest trading partner. French cumulative investment in India stands at €9.79 billion between April 2000 and March 2025, spanning key sectors such as services, cement, aviation, energy and manufacturing. Notably, 38 of the 40 leading French companies now have an operational presence in India, reflecting strong corporate confidence in the Indian market.
The momentum is expected to gather pace following the signing of the India–EU Free Trade Agreement in January 2026, which is projected to ease market access, reduce trade barriers and further accelerate bilateral commerce.
Digital Cooperation Takes Centre Stage
Digital collaboration has emerged as a dynamic new pillar of the partnership. During Prime Minister Narendra Modi’s visit to Paris in 2023, NPCI International Payments Limited signed an agreement with Lyra Collect to introduce India’s Unified Payments Interface (UPI) in France.
UPI was launched at the iconic Eiffel Tower in January 2024, making it the first merchant location in France to accept the Indian digital payment system. Since then, the service has expanded to major retail destinations including Galeries Lafayette and La Vallée Village, enhancing convenience for Indian tourists and strengthening fintech linkages.
Both countries are also collaborating on Digital Public Infrastructure (DPI) through platforms such as InFraStructures and InFinity, aimed at sharing expertise in scalable digital ecosystems.
Indian startups are increasingly engaging with the French innovation ecosystem, including incubation programmes at Station F—the world’s largest startup campus housed in the historic La Halle Freyssinet building in Paris. Hosting around 1,000 startups, Station F provides structured acceleration programmes, mentorship and access to investors and corporate partners.
Energy and Sustainability Drive Strategic Alignment
Energy cooperation remains a cornerstone of the India–France partnership. France is co-chairing the International Solar Alliance for 2024–26, an initiative jointly launched by India and France at COP21 in 2015.
The two countries are advancing collaboration in green hydrogen, civil nuclear energy and small modular reactors. Progress continues on the long-anticipated Jaitapur Nuclear Power Project, which is set to become one of the world’s largest nuclear power plants upon completion.
People-to-People Connect Expands
The relationship is further reinforced by robust people-to-people ties. Nearly 10,000 Indian students are currently pursuing higher education in France, while the Indian diaspora in mainland France has grown to over 100,000, contributing significantly to cultural and economic exchanges.
As India and France align their ambitions under the Horizon 2047 framework, the partnership is evolving into a comprehensive strategic alliance spanning defence, technology, sustainability, trade and global governance—positioning both nations as influential players in shaping the 21st-century global order.
