India-France trade can take a quantum leap: Exim Bank

For instance, India can supply aircraft parts to France, says the study

Bilateral trade ties between India and France can improve dramatically if both countries identify the potential sectors of trade, according to a study by the Export-Import Bank of India.

“To enhance India’s share in the import basket of France, the sixth largest global importer, the strategy would entail identification of potential items of India’s exports to France,” the study, Potential for Enhancing India’s Trade With France, noted.

For instance, India can supply aircraft parts to France. Globally, India exported around $1.7 billion worth of aircraft parts in 2012, but the exports to France were worth only $37 million, the study pointed out.

Ditto with petroleum products. While France’s imports from India has risen sharply from $2.2 million in 2001 to $1.4 billion in 2012, accounting for 3.8% of the former’s imports, there is enormous potential to further enhance such exports to France.

Total trade between the two countries grew by almost five times to $10.2 billion in 2012 from $2.2 billion in 2001. While France’s exports to India rose from $910 million in 2001 to $4.2 billion in 2012, its imports from India also improved significantly from $1.3 billion to $5.9 billion in 2012, according to the study.

India’s ranking as one of France’s significant trading partners is much lower than the latter’s share of 1.7% of India’s global exports in 2012. France is India’s 14th largest trading partner.

India has gained considerable visibility in only three main items of France’s global imports - apparels and accessories, leather goods, and textiles. However, India’s share is marginal in the case of other major import items of France.

“Some of these items are amongst India’s leading export items in the global market; this highlights India’s export capability of these items,” said Eximh Bank.