As Prime Minister Narendra Modi visits France on June 13-14, economic cooperation is expected to feature prominently in discussions between New Delhi and Paris. Over the past decade, trade, investment, technology partnerships and financial cooperation have emerged as important pillars of the India-France relationship, complementing the longstanding strategic partnership between the two countries.
According to the Ministry of External Affairs (MEA), France is India’s third-largest trading partner within the European Union, after the Netherlands and Germany. Bilateral trade has more than doubled over the past decade, reaching Euros 13.59 billion (USD 15.81 billion) in 2025-26. Indian exports to France during the same period stood at Euros 6.1 billion (USD 7.1 billion).
The trade relationship is expected to gain further momentum following the signing of the India-European Union Free Trade Agreement on January 27. Once implemented, the agreement is expected to expand market access, create new business opportunities and strengthen commercial engagement between India and France.
Investment flows have also expanded steadily. MEA data, based on figures from the Department for Promotion of Industry and Internal Trade (DPIIT), shows that France was India’s 11th-largest foreign investor between April 2000 and December 2025. During this period, cumulative French investment in India reached Euros 10.50 billion (USD 12.01 billion), accounting for 1.55% of total foreign direct investment inflows into the country.
French investments have been spread across multiple sectors. The services sector accounted for the largest share at 17.65%, followed by cement and gypsum products at 8.37%, air transport at 6.87%, miscellaneous industries at 6.54%, and petroleum and natural gas at 6.20%. Together, these five sectors represented 45.62% of total French equity inflows into India.
The corporate footprint of French companies in India has also expanded significantly. According to the MEA, 38 of the 40 companies that make up France’s CAC 40 (40 largest and most actively traded French companies) listed on the Euronext Paris stock index are present in India. In addition, around 50 to 70 French small and medium-sized enterprises operate in the country, primarily in the mechanical and pharma-chemical sectors.
Technology and innovation have increasingly become part of the economic relationship. Discussions during high-level exchanges in 2024 and 2025 focused on trade, technological advancement and energy security. Both countries have expressed interest in increasing joint ventures, encouraging investment flows and collaborating on technology development. Several Indian companies, including TCS and L&T Technology Services, have established innovation centres in France to support joint research and development efforts.
Institutional mechanisms have also been created to deepen economic engagement. Industry bodies such as FICCI, CII and ASSOCHAM regularly organise business delegations, seminars and round-table discussions with French counterparts. France also hosts events focused on sectors ranging from infrastructure and logistics to digital technology and financial services.
Financial cooperation has witnessed a recent boost. In March 2026, the Reserve Bank of India and Banque de France signed a Memorandum of Understanding aimed at strengthening cooperation between the two central banks. The agreement provides for regular high-level dialogue, exchange of experts and collaboration on projects of mutual interest.
As India and France continue to broaden their strategic partnership, growing trade volumes, rising investment flows and expanding technology collaboration indicate that economic ties are likely to remain a key area of engagement in the years ahead, according to the MEA.
