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Indian Economy - Understanding the basics of Indian economic system
Context: French President Emmanuel Macron's recent participation in India's Republic Day celebrations highlights the growing collaboration between India and France.
Establishment of diplomatic relations between France and independent India took place in 1947.
France and India established a strategic partnership in 1998, gaining momentum in the past decade with increased cooperation in defense, space, and nuclear technology.
France is India's second-largest arms supplier after Russia.
Indo-French partnership focuses on defense, renewable energy, and technology sectors amid China's assertive behavior and expanding influence.
De Gaulle's Vision: Charles de Gaulle sought autonomy from the U.S., exemplified by leaving NATO's military command in 1966.
Global Engagement: Dialogue with the Soviet Union, recognition of China, and emphasis on nuclear weapons control demonstrated France's global stance.
Nehru's Conviction: Jawaharlal Nehru emphasized absolute sovereignty, adopting nonalignment and indigenous nuclear development.
Diverse Alliances: Membership in the British Commonwealth, defense procurement from the UK and U.S., and a strong partnership with the Soviet Union showcased India's diverse alliances.
Shared Understanding: Shared understanding that strategic autonomy requires strong indigenous capacities has driven Indo-French cooperation in nuclear and space research since the 1950s.
Defense Deals: Trust and political reliability drove defense cooperation, with India diversifying procurement beyond Russia.
Transformation of Ties: Shift from buyer-seller relationships to technological cooperation for co-development and coproduction.
Unveiling the Horizon 2047 Roadmap during Prime Minister Modi's visit to France, setting the course for the bilateral relationship until 2047.
Emphasis on reformed and effective multilateralism, including the reform of the UN Security Council.
Support for India's permanent membership in the UNSC.
Recognition of nuclear energy's role in energy security.
Close cooperation through the International Solar Alliance.
Support for an India-EU Free Trade Agreement.
Declaration of 2026 as the India-France Year of Innovation.
Joint military exercises such as Varuna, Garuda, and Shakti, coupled with collaborative manufacturing initiatives, showcase the extensive depth of defense cooperation.
Both nations joined forces for India’s ambitious human spaceflight initiative named Gaganyaan.
France's participation in ISRO's upcoming Venus mission in 2025 marks another significant leap between the two countries.
Defense Equipment Production: India and France agreed to collaborate on joint production ventures for defense equipment, specifically mentioning helicopters and submarines for the Indian armed forces as well as for friendly nations.
Aviation Propulsion Services: Partnership for aviation propulsion engine maintenance, repair, and overhaul services, emphasizing Rafale and leading-edge aviation propulsion (LEAP) engines.
Civilian Helicopter Manufacturing: Tata Group and Airbus agreement for joint manufacture of civilian helicopters.
Aircraft Engine Agreement: CFM International's agreement with India’s Akasa Air for over 300 LEAP-1B engines.
Southwest Indian Ocean Cooperation: Both nations pledged to intensify cooperation in the southwest Indian Ocean, building on previous joint surveillance missions.
Technology Transfer for Fighter Jets: Safran, a French jet engine manufacturer, is ready to transfer 100% of its technology to India for the production of fighter jets.
The technology transfer will be for the Shakti jet engine project, which will power India's fifth-generation stealth fighter aircraft.
France announced a five-year Schengen circulation visa for Indian alumni initiative to attract up to 30,000 Indian students annually for higher education, illustrating the broader scope of bilateral engagements beyond the defense and aerospace sectors.
The Indo-Pacific concept provides a useful frame for Indo-French relations, with France having a direct interest in Indian Ocean stability.
Bilateral cooperation enshrined in the Joint Strategic Vision of India-France Cooperation in the Indian Ocean Region adopted in 2018.
India and France have actively sought to enhance their collaboration in the Indo-Pacific region
Released in July 2023, outlining commitments to strengthen plurilateral arrangements with countries like Australia and the UAE to counter China's coercive activities.
The recent review of the roadmap during Macron’s visit to India signals a mutual intent to expedite efforts in implementing joint strategies to address evolving security challenges in the Indo-Pacific.
Differing approaches to strategic autonomy pose challenges.
India’s foreign policy doctrine of non-alignment and sovereignty requires maintaining independence from formal alliances.
This emphasizes its commitment to sovereign decision-making in international relations.
France adopts a pragmatic approach that involves a willingness to engage in opportunistic alliances to balance the influence of major powers in the Indo-Pacific region, such as the United States and China.
This strategy allows France to pursue its strategic interests through flexible diplomatic engagements and multilateral partnerships to adapt to evolving geopolitical dynamics.
This difference in approach poses a substantial challenge to aligning their goals effectively, particularly in the face of China’s growing assertiveness.
Striking a balance between differing strategic autonomy approaches is crucial.
This entails fostering greater understanding and flexibility in accommodating each other’s strategic imperatives while pursuing objectives.
India can uphold its commitment to strategic autonomy by leveraging its role as a leading regional power in the Indo-Pacific, while actively engaging with France and other like-minded partners in plurilateral arrangements to counter China’s assertiveness.
Establishing regular dialogues across diplomatic, security, military, and intelligence establishments.
Utilizing existing cooperation mechanisms, such as the India-France Joint Working Group on counterterrorism, can facilitate greater convergence in addressing shared security concerns in the Indo-Pacific.
Prioritizing shared objectives like maritime security, freedom of navigation, and a rule-based order in the Indo-Pacific.
Both countries prioritize maritime security, freedom of navigation, and a rule-based order in the region, reflecting a common commitment to upholding international norms and principles.
By focusing on these objectives, India and France can overcome challenges posed by their divergent approaches and forge a more cohesive and effective partnership in countering China’s assertive behavior.
Strategic Dialogues: High-level strategic dialogues to address regional security challenges.
Defense Cooperation: Expanding defense cooperation through joint military exercises and knowledge-sharing.
Renewable Energy and Technology: Prioritizing collaboration in renewable energy and technology partnerships.
Trade and Business Partnerships: Exploring opportunities for bilateral trade and business partnerships in infrastructure and the digital economy.
Multilateral Forums: Active engagement in multilateral forums like the Quad and fostering cultural exchanges.
Indo-French partnership reflects evolving global geopolitics, facing challenges and opportunities.
Ongoing dialogue, flexibility, and a shared commitment to common goals can foster a resilient partnership.
Collaboration can significantly contribute to regional stability, security, and prosperity in the Indo-Pacific.
By: Shubham Tiwari ProfileResourcesReport error
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