Modi and Macron set new India-France trade, AI and defence targets in Nice

India and France have agreed a new package of cooperation covering trade, artificial intelligence, defence, space and economic security after talks between Prime Minister Narendra Modi and President Emmanuel Macron in Nice. The meeting produced a mechanism aimed at doubling annual bilateral trade within five years, starting from the current level of about $16 billion. It also set out an India-France Innovation Roadmap 2030 and a joint working group on AI governance.

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The Ministry of External Affairs said the two leaders held extensive discussions on bilateral relations and agreed to deepen ties in economic growth, technology and innovation, talent mobility, and people-to-people and cultural exchanges. The statement said they welcomed the steady growth in trade and decided to create a high-level mechanism to accelerate it. They also called for early implementation of the India-EU Free Trade Agreement, which they said could expand trade and investment further.

The talks also covered supply chain resilience and economic security, with both sides agreeing to strengthen cooperation in critical minerals. The ministry said the leaders welcomed a Dialogue on Economic Security and discussed ways to enhance collaboration in the SME, aviation and railway sectors. They also welcomed an agreement to establish a Centre of Excellence for Skilling in Aeronautics in Kanpur, underlining the practical side of the relationship beyond high-level diplomacy.

Defence and space were also central to the meeting. The ministry said the two leaders expressed satisfaction with the growth and depth of bilateral defence collaboration and agreed to intensify it further, with a focus on co-design, co-development and co-production of defence platforms and advanced technologies. That language points to a relationship that has moved beyond procurement into joint industrial and technological work, which is increasingly important for both countries as they seek more resilient supply chains and greater strategic autonomy.

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The meeting came after India and France elevated ties to a special global strategic partnership earlier this year, making this the first meeting between the two leaders since that upgrade. Modi said in a post on social media that it was a productive first leg and that the partnership would keep scaling new heights. He is due to return to France for the G7 meeting in Evian-les-Bains and is also scheduled to go to Paris, giving the two sides further opportunities to build on the announcements.

What remains unclear is how quickly the new mechanisms will translate into measurable trade growth, or how much progress can be made on AI governance, defence co-production and the wider India-EU trade talks. The practical impact will depend on follow-through from officials, industry and regulators in both countries. For now, the meeting signals a broadening of the relationship into areas that are increasingly central to economic and strategic policy.

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