India-France

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Context

Continuing a "wonderful" legacy of almost 60 years of technological and scientific space collaboration, India and France have decided to establish a bilateral strategic discussion to address current issues in space, including preserving secure access.

What is the Background?

• Various specialists from space and defence departments will contribute to this discussion.
• In addition, the first India-France strategic conversation on space problems would take place as early as 2022.

How has India-France relations been?

• After our 1998 nuclear tests, when France declined to impose bilateral sanctions on us and demonstrated a far deeper understanding of India's security imperatives than other nations, we launched a Strategic Dialogue with them.
• Bilateral trade with France has been steadily increasing over the previous decade, and is expected to reach USD 10.75 billion in 2020. The two sides also agreed that moving on with talks on an India-EU trade and investment pact was critical.
• In 2005, a deal was made for the construction of six Scorpène submarines in India with French assistance.
• In 2003 and 2011, joint exercises between the air forces (Garuda series) and armies (Shakti) were established.
• The 36 Rafale aircraft were purchased under a government-to-government transaction.
• Negotiations between the Nuclear Power Corporation of India (NPCIL) and Areva for the construction of six EPR (European Pressurized Reactors) nuclear power reactors with a total capacity of 9.6 GW began around a decade ago.

What are the concerns?

• While the government-to-government relationship is strong, the business-to-business relationship is poor. India's trade with Germany is less than 50% bilateral. The €12 billion aim established in 2008 has yet to be met.
• French FDI has increased in recent years, yet this scarcely reflects the reality that India already has over 800 French companies.

Conclusion

French social security legislation, long-term student visas, and the ability to work for two to three years to pay off student loans are just a few of the issues that need to be resolved in order for the two nations to collaborate more effectively.

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