French President Emmanuel Macron is set to hold talks with Indian Prime Minister Narendra Modi in Mumbai today during his three-day visit to India, primarily focusing on collaboration in artificial intelligence and a potential multi-billion dollar fighter jet agreement.
France aims to enhance its military alliance with New Delhi, with discussions centered on a potential deal for an additional 114 French Dassault Rafale fighter jets.
Modi, welcoming Macron and his wife Brigitte to India’s financial hub, expressed anticipation for strengthening bilateral relations to new heights. Macron, on his fourth visit to India since assuming office in 2017, kicked off his itinerary by paying respects to the victims of the 2008 Mumbai attacks and engaging with Bollywood personalities like Shabana Azmi and Manoj Bajpayee.
The visit follows India’s recent confirmation of its intention to procure Rafale jets and the signing of a significant free trade agreement with the European Union in January. Macron is scheduled to attend an artificial intelligence summit in New Delhi later this week.
Described as the “contract of the century” by India specialist Christophe Jaffrelot, the potential €30 billion ($35 billion) agreement for 114 Rafales, with the majority to be produced in India, signifies a major milestone in India’s efforts to diversify its military equipment suppliers and boost domestic manufacturing.
In addition to the fighter jet deal, Modi and Macron are expected to jointly inaugurate India’s first helicopter final assembly line in Karnataka, a collaboration between Tata Group and Airbus. The facility will focus on manufacturing the Airbus H125 helicopter.
The leaders are keen on strengthening economic ties between France and India, recognizing the importance of diversifying trade partnerships. The discussions this week will also touch upon global economic uncertainties arising from tariff policies under US President Donald Trump and China’s growing influence in the region.
The bilateral trade between France and India, driven by defense and aerospace sectors, amounts to approximately €15 billion ($18 billion) annually. French direct investments in India total nearly €13 billion ($15 billion), reflecting the deep economic engagement between the two countries.
Personal rapport between Modi and Macron is highlighted as a key factor in fostering strong ties. However, differences remain concerning India’s stance on Russia’s actions in Ukraine, particularly in light of US pressure to halt oil purchases from Moscow.
The ongoing visit underscores the commitment of both nations to strengthen cooperation across various sectors and navigate complex geopolitical challenges in the global landscape.