Macron pitches France as India’s European trade gateway

France wants leading role in India trade corridor

Last year, Macron appointed a special IMEC envoy to shape the project and France’s involvement in it.

Indian analyst Swasti Rao said that while there was no doubt about how France can be a conduit for Indian trade with the European Union (EU), Marseille is not the only port in the running.

“The port in Marseille undoubtedly has a large capacity, but India is looking at the possibility of other entry points into Europe, such as the Trieste port in Italy,” she said.

Italy is also reportedly planning to appoint a special envoy for IMEC to deepen its engagement with the project.

IMEC’s many challenges

However, experts acknowledged that the road to IMEC — planned to be a 4,800-kilometer (2,983-mile) network of ports, rails, and other transport routes that runs through geopolitical hot spots — is riddled with challenges.

First and foremost is IMEC’s financing.

Saudi Arabia has announced an investment of $20 billion (€19.1 billion), but experts believe much more will be needed to put in place the infrastructure required to boost connectivity. The EU, so far, has not earmarked funding for IMEC.

The corridor envisages offloading Indian goods at Khalifa Port in the UAE, transferring them on trains via Saudi Arabia and Jordan to Israel’s port of Haifa, and from there across the Mediterranean to Europe. However, a large part of the required rail network is missing in the Middle East.

Then there are challenges concerning India’s manufacturing capacity.

China is currently the largest exporter to the EU, while India is the EU’s ninth-largest trading partner.

India imports heavily from China, and there are concerns that its dependence on Chinese goods may keep European countries vulnerable to Chinese supply chains.

Furthermore, the Israel-Hamas war, and resulting regional instability, following the Hamas-led attack in Israel on October 7, has dimmed the prospects of normalization between Saudi Arabia and Israel, creating doubts over the feasibility of IMEC through the Middle East.

France as ‘India’s epicenter’ in Europe

While progress on IMEC may be slower than desired, Modi’s visit was a sign that India is poised to build its bilateral and business ties with France.

“From India’s point of view, IMEC was perfect to create more routes, but then the Middle East went up in flames,” analyst Rao said.

“Now we are saying, ‘Let’s work on IMEC, but at the same time, seek better connectivity with Europe,'” she added.

“France is India’s epicenter in Europe,” she said, adding that bilateral cooperation is aimed at increasing overall trade with the EU — whether or not IMEC becomes a reality.

India eyes French fighter jets

And a big part of this trade is shaping up to be defense deals.

Sources told DW, and Indian media reported, that India is likely to acquire 26 French-made Rafale fighter jets, adding to the 33 the Indian Air Force (IAF) already has. Three French Scorpene submarines, in addition to six already purchased by the Indian navy, are also on the table.

The arms deals amount to some €10.6 billion.

“Indian forces don’t want Russian equipment,” after the debacle in Ukraine, Delhi-based defense analyst Rahul Bedi told DW.

Russia has been India’s top defense exporter for years, but Bedi said the quality of French defense equipment over Russian makes it more attractive for India.

“The Indian forces love what they have bought so far and they want more,” he said.

According to a report by the Stockholm International Peace Research Institute (SIPRI) last year, Russia became the third-largest arms exporter in the world, falling just behind France.

In the period studied, French exports to India increased while Russia’s declined.

At an AI summit in Paris earlier in the week, Modi was seated between Macron and US Vice President JD Vance.

Both France and the US are trying to sell their defense equipment to India, which is the largest weapons importer in the world.

Modi headed to the US after leaving France for wide-ranging talks with President Donald Trump on Thursday. The US president told a news conference that the US would increase defense sales to India by “billions” worth of US weapons, including fighter jets.

However, Indian experts said New Delhi prefers the French kit, even though it is more expensive.

“French equipment is more expensive than American equipment but it comes with far fewer restrictions,” said Bedi.

“America imposes so many protocols, about where you can or cannot deploy the equipment , against whom you are allowed to deploy,” he added.