French firms integrating Indian cos into global supply chains: Envoy

As business tycoons from France visit India, French ambassador Thierry Mathou says in an interview that French companies are expanding footprint in India by investing, producing and employing locally, and integrating Indian companies in global supply chains.

• What is the state of play in Indo-French cooperation in the field of aerospace?
• The Indian market is very attractive. How are you contributing to ‘Make in India’ policy?
• What are the likely next steps in Indo-French cooperation in aerospace?

• What is the state of play in Indo-French cooperation in the field of aerospace?

France has been India’s strategic partner for over twenty-five years, especially for defence and aerospace cooperation, which goes back to India’s Independence. As a matter of fact, ‘Make in India’ has been a reality for the French defence industry for many decades. For example, the technology for the light helicopter Cheetah/Chetak was transferred in 1962 with the beginning of its production in India in the same year.

France is privileged to continue being closely associated with the development of India’s aviation and space in dustry. 55% of French exports to this country are in the aerospace sector, amounting to 2.7 billion euros for the first half of 2024. The results of this cooperation are quite tangible:

Indigo Airlines owns hundreds of Airbus planes and, in 2023, placed an order for an additional 500 planes. The Indian Air Force is operating thirtysix Rafale aircraft. Further, our space cooperation has also expanded from the traditional partnership between CNES and ISRO to cooperation between our space commands, the building of private joint satellites, and more.

• The Indian market is very attractive. How are you contributing to ‘Make in India’ policy?

Beyond the impressive numbers on our cooperation, I would like to underline a key fact: the French approach when it comes to industrial cooperation has always been, whenever suitable, to offer as much indigenous production in India as possible.

Nowadays, GIFAS companies represent more than 50,000 indirect jobs in India, involving 227 Indian suppliers and bringing more than a billion of investments to India every year. French companies are strengthening their industrial footprint by investing, producing and employing locally, and integrating Indian companies in global supply chains. 60 defence companies have already established physical offices and facilities in India, 15 of which have been functioning since 2018.

Recognising the strength of India’s engineering and IT talent pool, Airbus has been investing for the past 16 years in the Airbus India Engineering Centre and has now launched, with Tata STRIVE, an initiative to develop two skills training centres in Delhi and in Bengaluru. Thales is also a large contributor in innovation, employing some 1600 engineers in its engineering centre. There are, of course, the big groups but also more and more small and medium enterprises are expanding their footprints in India.

• What are the likely next steps in Indo-French cooperation in aerospace?

We are currently working on an Indo-French campus for training and professions in aeronautics and space, which would provide a framework for these. We are also working with India’s ministry of civil aviation to set up an aeronautics cluster, aimed at raising concrete initiatives at the ministerial level to promote the French offer in India.

France will support India’s efforts to attain the goal of decarbonising air transport by 2050, in line with its ICAO commitments. India is ready to move towards sustainable aviation fuels as early as 2027, as demonstrated by the efforts made by Indian authorities and airlines.

The aerospace sector embodies the best of our IndoFrench win-win cooperation. We’re looking forward to using it as a model to further strengthen our ties in other key areas. The India-France Year of Innovation, unfurling in 2026, will be a unique opportunity for this.

The interview was published in The Times of India on 14 October 2024.