France's Economy
France and India: Partners and Lessons
How France and India cooperate in defence, nuclear energy, space and tech, and what France's model teaches, with a recap of the module.
France is one of India’s closest strategic partners.
Cooperation
- Defence: Rafale jets for the Indian Air Force (2016 deal) and Navy (2025 deal); Scorpène submarines built in Mumbai.
- Nuclear: plans for the Jaitapur nuclear plant with EDF.
- Space: long cooperation between ISRO and France’s CNES.
- Tech: India’s UPI payments launched in France in 2024, starting at the Eiffel Tower.
- International Solar Alliance, co-founded in 2015.
Trade and investment
French firms like Airbus, Saint-Gobain, Capgemini and Schneider operate in India.
Lessons from France
- State-led industrial policy can build champions but needs competition.
- Nuclear standardisation delivers clean power.
- Generous welfare needs sustainable finances.
- Labour protections can create insider-outsider gaps.
Module recap
- France has a large state role and welfare system.
- Colbertism began state-led industry.
- The Trente Glorieuses brought rapid growth.
- Indicative planning guided investment.
- Nuclear provides most electricity.
- Public spending is about 57 percent of GDP.
- The 2023 pension reform sparked protests.
- The 35-hour week had little job effect.
- Insider-outsider gaps drove unemployment.
- Farmers benefit from CAP.
- Debt and political deadlock worry markets.
The Eiffel Tower payment
In 2024, an Indian tourist paid for an Eiffel Tower ticket using UPI on her phone, a sign of growing tech ties.
Thinking France-India ties are only about defence
They span nuclear, space, tech and solar.
Key takeaways
- France and India cooperate on defence, nuclear, space and tech.
- UPI launched in France in 2024.
- France's model offers lessons on industry, energy and welfare.
- Sustainable finances are key.
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