“Unlocking Opportunities: Macron Positions France as India’s Premier European Trade Gateway” – DW – 02/14/2025

This week, Indian Prime Minister Narendra Modi wrapped up his trip to France with a visit to Marseille. Here, French President Emmanuel Macron highlighted Marseille as a key entry point for trade through the India-Middle East-Europe Economic Corridor (IMEC).

Announced at the recent G20 summit in New Delhi, IMEC aims to create a railway and maritime corridor that connects India with Europe, passing through Israel, the UAE, and Saudi Arabia. It’s seen as a possible counter to China’s Belt and Road Initiative.

Macron expressed confidence in Marseille’s potential, describing IMEC as a “fabulous catalyst” for new projects and investments. During his time in Marseille, PM Modi attended a presentation by CMA CGM Group, a French logistics firm eager to help bring IMEC to fruition.

Modi pointed out the importance of partnerships in expanding trade and connectivity. He shared his hopes on social media about collaborations boosting India’s economic growth.

France is keen to play a significant role in this trade corridor. Last year, Macron appointed an envoy specifically for IMEC to deepen France’s involvement.

However, experts believe there are several other ports vying for prominence, including Trieste in Italy. Although Marseille has a large capacity, some analysts, like Swasti Rao, highlight that India is exploring multiple options for entry points into Europe.

The road ahead for IMEC is not without challenges. Financing is a primary concern. While Saudi Arabia has pledged $20 billion, much more will be required for the infrastructure. Currently, the EU has not allocated any funds for the project.

IMEC plans to transport Indian goods starting at Khalifa Port in the UAE, then moving them by train to Haifa in Israel and onwards to Europe. However, significant gaps exist in the expected rail network across the Middle East.

India’s manufacturing capabilities also come into question. Currently, China is the largest exporter to the EU, while India ranks ninth. Concerns linger about India’s heavy reliance on Chinese imports, which could affect European nations’ supply chains.

Regional instability, particularly following recent conflicts involving Israel and Hamas, has raised doubts about whether IMEC can successfully navigate the Middle East.

Despite these setbacks, PM Modi’s visit signaled India’s intent to strengthen ties with France. As Rao noted, efforts for better connectivity will continue, with or without IMEC.

Defense trade is a major aspect of this relationship, with reports suggesting India may buy 26 more Rafale fighter jets from France, in addition to the 33 it already possesses. There’s also discussion around acquiring additional Scorpene submarines, potentially amounting to €10.6 billion in arms deals.

Recent trends indicate India moving away from Russian military equipment, as the quality of French defense products gains favor among Indian forces. Analysts believe that, despite the higher costs of French equipment, the lack of restrictions that often accompany U.S. arms makes French offerings more appealing to India.

As India explores defense options, it is also looking to strengthen economic links in Europe with the support of France. The path ahead may have its hurdles, but the commitment to building a robust partnership remains strong.

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