India, France deepen economic partnership; critical minerals, cross-investments in focus

India and France have agreed to deepen cooperation in strategic sectors including critical minerals, cross-border investments and financial services as the two countries sought to broaden their economic partnership during the India-France Economic & Financial Dialogue (EFD) held in Aix-en-Provence on Friday.

Union Finance Minister Nirmala Sitharaman and France’s Minister of Economy, Finance, Industrial, Energy and Digital Sovereignty Roland Lescure co-chaired the dialogue, where both sides reviewed the global economic outlook and explored ways to strengthen bilateral economic and financial cooperation.

The two countries identified critical minerals as a key area for future collaboration as part of a broader discussion on economic sovereignty and security policies. They also discussed measures to increase cross-investments, opportunities in the high-speed railway sector following the declaration of intent on railways, and proposals to strengthen connectivity between the financial industries of India and France.

The ministers also exchanged views on greater alignment at multilateral economic platforms such as the G20 and the Paris Club, particularly in the context of India’s association with France’s G7 presidency. They acknowledged the contribution of the French Development Agency to India’s economic development and agreed to continue using the Economic & Financial Dialogue as the principal platform for discussions on trade, investment, technology and finance. The next edition of the dialogue is expected to be held in 2027.

Middle class remains growth driver

Earlier in the day, speaking at the Rencontres Économiques d’Aix-en-Provence, Sitharaman said India’s expanding middle class continues to be the country’s “engine of growth”, driven by rising consumption and supported by financial inclusion and welfare measures. She said nearly 500 Indian cities are poised to emerge as new centres of economic activity, while citing OECD projections that India is expected to surpass China in the size of its middle-class population between 2030 and 2035.

“The middle class is the engine of growth. After Covid, India has remained the fastest-growing large economy, primarily because of consumption driven by the middle class, which has created a virtuous cycle of economic activity,” Sitharaman said.