Key Highlights
Prime Minister Narendra Modi and French President Emmanuel Macron held bilateral talks in Nice on June 14, 2026, setting an ambitious target to double bilateral trade from approximately $16 billion to $32 billion within five years. The leaders also agreed to deepen cooperation in civil nuclear energy, defence, technology, and innovation.
Trade and Economic Cooperation
India and France have established a high-level mechanism to achieve the trade doubling target. An Economic Security Dialogue will be launched to strengthen supply chains in critical minerals and technology. The two sides also adopted an Innovation Roadmap 2030. France is India's third-largest trade partner in the EU, with two-way trade reaching $15.81 billion in 2025-26. The India-EU Free Trade Agreement, expected to be signed later this year, is seen as a major catalyst for further growth.
Defence and Rafale Jets
Defence cooperation was a key focus, particularly India's plan to acquire 114 Rafale combat jets. Under the multi-role fighter aircraft project, 18 jets will be delivered directly from Dassault, while 96 will be manufactured in India with around 50% indigenous content. PM Modi emphasized the Make in India initiative, pushing for co-development, co-design, co-production, and co-manufacturing in the defence sector.
Civil Nuclear Energy
Both leaders noted that India's SHANTI Act creates new opportunities for collaboration, including on small and advanced modular reactors (SMRs/AMRs). French companies like EDF Group are now open to direct participation in India's nuclear sector, either independently or with Indian private firms. Discussions on the Jaitapur nuclear project in Maharashtra continue, focusing on technical aspects and financing.
Other Key Outcomes
- General Security Agreement on exchange and protection of classified information.
- Joint working group on global governance of artificial intelligence.
- Expanded use of India's UPI system in France.
- MoU for a center of excellence in aeronautics skilling at IIT-Kanpur.
- Declaration of intent on high-speed railway cooperation.
- 19 agreements between innovation ecosystem institutions.
- Enhanced cooperation in human spaceflight and space situational awareness.
- Visa-free transit for Indian nationals at French airports operationalized.
Global Issues
Modi and Macron also discussed the conflicts in Ukraine and West Asia. PM Modi is scheduled to attend the G7 Summit in Evian later this week.
FAQ
What is the new trade target set by India and France?
India and France aim to double bilateral trade from the current $16 billion to $32 billion within five years.
What agreements were signed during PM Modi's visit to France?
Key outcomes include a high-level mechanism to double trade, Economic Security Dialogue, Innovation Roadmap 2030, and cooperation in nuclear energy, defence, AI, UPI, and skilling.
How will the Rafale jet deal benefit India's Make in India initiative?
Under the MRFA project, 96 of 114 Rafale jets will be manufactured in India with about 50% indigenous content, promoting co-development and co-production.
What is the significance of the SHANTI Act for nuclear cooperation?
India's SHANTI Act opens the door for private sector and foreign direct investment in nuclear energy, allowing French companies to participate in conventional reactors and small modular reactors.