Modi and Macron Agree on 25-Year Plan to Deepen Cooperation

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(Bloomberg) — Indian Prime Minister Narendra Modi has pledged to boost cooperation with France in defence, nuclear energy and space as part of a 25-year plan to deepen ties as the South Asian country presents itself as a bulwark against China.

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Speaking alongside French President Emmanuel Macron during a trip to Paris, he said defense is a key pillar of the French-Indian relationship. India said it plans to buy three Scorpene-class submarines made by France’s Naval Group and 26 Rafale fighter jets built by Dassault Aviation SA.

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“We are celebrating the 25th anniversary of our strategic partnership,” Modi told reporters at the Elysee Palace on Friday. “Based on that, we are preparing road maps for the next 25 years.”

Describing the two countries as natural partners, he said India was considering joint production of defense equipment, including helicopter engines, as well as cooperation in small nuclear reactors. Progress has been slow on the larger reactors made by Electricite de France SA.

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Modi was invited as a guest of honor to the annual Bastille Day military parade in Paris, which celebrates the French Revolution, and was awarded the Legion of Honor, France’s most prestigious award. Previous foreign guests include former US President Donald Trump and former German Chancellor Angela Merkel.

Macron has sought to deepen political and trade ties with emerging powers including India, the world’s most populous country and current leader of the G20, as part of efforts to resist the rise of China. Total goods traded between France and India approached $15.8 billion in 2022, an increase of 6%.

The rapprochement between Moscow and Beijing has allowed Modi to position India as a partner in Asia for Paris, Washington and their allies who are looking to draw New Delhi into their orbit by offering arms platforms and investment.

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Macron and Modi said they would coordinate their policies in the Indo-Pacific region, which France considers strategic because it hosts some 1.6 million of its citizens. Paris also has a military presence in the French outer islands there, including New Caledonia, Wallis and Futuna, and Mayotte, with about 8,000 soldiers. Macron plans to travel there at the end of the month, and is expected to travel to India in September.

However, India rejected Western pressure to condemn the Russian invasion of Ukraine. The country has maintained close ties with Moscow, its largest arms supplier, though Russia is now slowing deliveries. Last week, Modi took part in an online meeting of leaders of the Shanghai Cooperation Group, which included Russian President Vladimir Putin. India also buys oil from Russia.

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An official in Macron’s office said this was no reason to reject India as a partner and argued that Modi was willing to maintain relations with both Russia and Ukraine, and help. The French president has also sought to persuade Beijing to mediate with Putin, despite tensions over Taiwan.

“We share a common concern about the risk of the international community disintegrating, especially in the context of the Russia-led war in Ukraine,” Macron said alongside Modi. “We share the same goal: a lasting peace, and to confront the consequences of this war of aggression for the most vulnerable countries, particularly in terms of food safety and financing capacities.”

Last month, India signed a series of defense agreements with the United States during Modi’s first state visit — including a project by General Electric to manufacture F414 engines used in fighter jets with India’s state-owned Hindustan Aeronautics. The marine arm of Mazagon Dock Shipbuilders Ltd. India agreed in principle to jointly build submarines for the Indian Navy.

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India and the United States, along with Japan and Australia, are members of the so-called Quadruple grouping, which is seen as a counter to China’s growing assertiveness in the Indo-Pacific region. Beijing, which has a border dispute with New Delhi, has criticized the group as a “clique” that could fuel a new Cold War.

aircraft purchases

The most important French exports to India include aircraft and communications equipment. Earlier this year, India’s dominant airline, IndiGo, placed a record-breaking order with Airbus SE for 500 narrow-body aircraft, following an agreement by Air India Ltd. to purchase 250 aircraft.

India had already bought 36 Rafale aircraft in 2015 for 7.9 billion euros, and French Mirage aircraft in the 1980s, thus joining the “Rafale club” that includes Egypt and the United Arab Emirates. In 2005, New Delhi purchased six Scorpene-class diesel submarines from the Naval Group, which it built in partnership with Mazagon. The sixth submarine will be delivered next year.

Modi and Macron were due to watch a fireworks display in Paris together later on Friday after dinner at the Louvre with Indian and French corporate executives.

— With assistance from Samy Adghirni and Bibhudatta Pradhan.

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