France Names India Top Strategic Priority: G7 2026 & SHANTI Act

India and France established their strategic partnership in 1998 — the first such designation India accorded to any country. Over two-and-a-half decades, the relationship expanded from defence and counter-terrorism to encompass space, maritime security, civil nuclear energy, digital technology, and artificial intelligence.

The pace of engagement accelerated sharply in recent years. PM Modi visited France in February 2025, followed by President Macron’s fourth visit to India in February 2026 for the AI Impact Summit in Mumbai and New Delhi. During that visit, both leaders announced the elevation to a “Special Global Strategic Partnership”, guided by a “Horizon 2047 Roadmap” — a long-term framework aligned to India’s centenary of independence.

Two philosophical anchors underpin the partnership: France’s long-standing support for India’s permanent UNSC membership, and both nations’ shared commitment to “strategic autonomy” — the principle that countries should maintain independent foreign policy choices rather than binding themselves to any single bloc.

The February 2026 joint statement between Modi and Macron covered defence manufacturing, innovation, AI governance, clean energy, higher education, and critical technologies. Key features include:

• Defence: 26 Rafale-Marine fighter jets finalised for the Indian Navy (INS Vikrant and INS Vikramaditya); BEL-Safran JV to co-produce HAMMER air-to-surface missiles in India; Joint Advanced Technology Development Group established; Defence Cooperation Agreement renewed.
• Make in India in Defence: Indigenous content in the Rafale programme targeted at up to 50%; H125 helicopter Final Assembly Line inaugurated at Vemagal, Karnataka — India’s first private-sector helicopter facility (Tata Advanced Systems + Airbus).
• Nuclear: Deepened cooperation on Jaitapur Nuclear Power Plant (Maharashtra); collaboration on Small Modular Reactors (SMRs) and Advanced Modular Reactors (AMRs); Special Task Force on civil nuclear energy established.
• Technology & Innovation: India-France Year of Innovation 2026 launched; Centres of Excellence in AI, digital sciences, and biotechnology planned; France aims to host 30,000 Indian students by 2030.
• Bharat Innovates: A start-up and venture capital platform launched jointly, connecting ecosystems from India, France, and partner countries.

The Modi-Macron bilateral in Nice on 14 June 2026 is the diplomatic centrepiece of the six-day visit. French sources confirmed it will cover defence agreements, civil nuclear collaboration, and innovation. On the margins, both leaders will jointly inaugurate Bharat Innovates — a start-up and venture capital platform under the India-France Year of Innovation 2026.

The full itinerary unfolds as follows: Modi lands in France on 13 June; holds the Nice bilateral on 14 June; visits Slovakia (14–16 June) — the first visit by an Indian PM to Slovakia since 1993; attends the G7 Summit in Évian (16–17 June); and concludes with the VivaTech Summit in Paris on 18 June — Europe’s largest technology and start-up event.

On the next Rafale deal, French sources described the new framework as “distinct from previous deals,” with Make in India integration built in from the outset and a “firm commitment to the integration of local weapons systems.”

The most significant structural enabler of India-France nuclear cooperation is the SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India), 2025. Passed by both houses of Parliament in December 2025, it received Presidential assent on 21 December 2025 — the most sweeping reform of India’s nuclear governance in over six decades.

The Act repeals two key laws: the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 (CLND Act). The CLND Act’s supplier liability provisions had long deterred French utilities and equipment suppliers from engaging commercially at the Jaitapur Nuclear Power Plant.

Key provisions of the SHANTI Act:

• Allows private Indian companies, JVs, and foreign entities to build, own, operate, and decommission nuclear plants under a government licence — ending NPCIL’s near-total monopoly
• Removes statutory supplier liability, replacing it with a contract-based framework
• Establishes graded operator liability tied to reactor thermal output
• Grants statutory independence to the Atomic Energy Regulatory Board (AERB)

India’s nuclear capacity target is 100 GW by 2047. Currently, India operates 24 reactors with 7,943 MW of capacity, with 6 more units (4,768 MW) under construction.

The 52nd G7 Summit is held in Évian-les-Bains, Haute-Savoie, France, from 15–17 June 2026 — the second time the lakeside town has hosted the summit (the first was the 29th G8 in 2003). France holds the G7 Presidency in 2026.

The G7 comprises seven advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, with the European Union participating in all discussions. India, Kenya, Brazil, and South Korea are invited partner countries at the 2026 summit.

France’s five priority clusters for 2026:

• Reducing excessive macroeconomic imbalances and fostering shared growth
• Renewing international partnerships and development solidarity
• Strengthening the resilience of critical mineral value chains
• Settling major geopolitical crises (including West Asia)
• Fighting organised crime and protecting citizens online

This is India’s 13th participation at the G7 as a partner nation and PM Modi’s 7th consecutive appearance. Crucially, in 2026 India is participating across all G7 tracks — not merely in specific outreach sessions — a sign of New Delhi’s growing centrality to global discussions.

Bilateral merchandise trade reached €13.59 billion (≈USD 15.81 billion) in 2025–26 — more than double over the previous decade. France is India’s third-largest EU trading partner (after the Netherlands and Germany). Indian exports to France stood at approximately €6.1 billion in 2025–26.

France is the 11th largest foreign investor in India, with cumulative FDI of approximately €10.5 billion from April 2000 to December 2025 (1.55% of total FDI). Top sectors include services, cement, aviation, miscellaneous industries, and petroleum. Notably, 38 of the 40 most prominent French companies have operations in India.

The landmark India-EU Free Trade Agreement, signed on 27 January 2026, is expected to reduce tariffs across aeronautics, space, high-speed rail, and technology. The India-France Double Tax Avoidance Agreement (DTAA) was also amended in 2026 to facilitate greater investment flows.

India’s presence at the G7 is framed around its role as a representative of the Global South — developing nations across Asia, Africa, Latin America, and the Caribbean. As the world’s most populous country and fifth-largest economy, India bridges the gap between advanced G7 economies and lower- and middle-income countries.

In multilateral forums, India advocates for reformed international financial architecture, equitable technology access, and climate finance commitments from developed nations. France, as G7 President, has invited India into all preparatory tracks — signalling a preference for substantive engagement over tokenism. India’s simultaneous BRICS Chairmanship in 2026 amplifies its ability to coordinate positions across blocs.