French President Emmanuel Macron wrapped up the first day of a state visit to India on February 17, 2026, elevating defence cooperation with Indian Prime Minister Narendra Modi and setting out an expanded industrial and military roadmap.

The two leaders agreed to renew their bilateral defence cooperation framework for another decade whilst also broadening the joint production of missiles, helicopters and also advanced combat aircraft, thereby highlighting Paris’s position as one of New Delhi’s most trusted security partners, according to a joint statement issued by the two countries.

In the joint statement both India and France described their relationship as a special global strategic partnership, reflecting a closer level of alignment on Indo-Pacific security, supply chains and defence technology.

Officials from India’s Ministry of Defence and its French counterpart also outlined plans for greater interoperability, more frequent joint exercises and a deeper level of industrial integration, including expanded manufacturing in India under the government’s self-reliance drive.

A key outcome of the first day of the Macron visit was an agreement to localise the production of the HAMMER air-to-ground precision munition in India through cooperation between Bharat Electronics Limited (NSE:BEL) and Safran (EPA:SAF). The project envisages assembly and integration in India with technology transfer, aligning with procurement policies as overseen by India’s Ministry of Defence. India’s domestic production of the weapon would further support both its current and future combat aircraft fleets.

The visit also spotlighted helicopter manufacturing linked to Airbus (EPA:AIR), including the final assembly of light utility platforms in southern India. India’s Ministry of Civil Aviation and India’s Ministry of Defence are coordinating certification and procurement pathways, positioning India as a potential export base for select models of the aircraft.

Behind these announcements lies a long-standing defence relationship that dates to the earliest years of India’s independence following 1947. France was among the first suppliers willing to provide advanced aviation technology to New Delhi at the time as it sought to diversify from British and later Soviet sources.

In the 1950s, India worked to induct the Ouragan fighter, followed by the Mystère IV. Both were both produced by Dassault and operated by the Indian Air Force during periods of regional tension. In the decades that then followed, France supplied the Alouette III helicopter, manufactured locally as the Chetak, which became a mainstay of India’s naval and air operations.

The arrangement marked an early example of licence production in India, setting a precedent for later industrial cooperation. A major inflection point came in the 1980s with India’s acquisition of Mirage 2000 fighters from Dassault Aviation(EPA:AM).

The aircraft enhanced precision-strike capability and played a prominent operational role during the 1999 Kargil conflict. The Mirage programme established a durable logistics and upgrade ecosystem between Indian and French defence industries.

Naval collaboration expanded  more recently, in the 2000s under Project 75, through which India built Scorpene-class submarines in Mumbai with technology from France’s Naval Group. The programme was seen to embed advanced submarine design expertise within India’s shipbuilding sector while also strengthening undersea capabilities in the Indian Ocean region.

The strategic relationship was first formalised in 1998, when the two countries declared a partnership shortly after India’s nuclear tests. France maintained engagement with New Delhi at a time when several Western governments were imposing restrictions, reinforcing perceptions in India of Paris as a consistent and reliable partner.

That partnership deepened further in 2016 with a government-to-government agreement for 36 Rafale fighters, again supplied by Dassault Aviation (EPA:AM). The aircraft are now fully operational and integrated with advanced weapons, including the Meteor air-to-air missile and the SCALP cruise missile.

Indian officials have long described the Rafale fleet as central to maintaining air superiority in an adversary rich environment. Officials have also confirmed that discussions are advancing on a larger multirole fighter acquisition for the Indian Air Force, potentially involving as many as 114 additional Rafales with expanded local industrial participation.

While financial details remain under negotiation, and details are scarce, defence analysts expect any agreement to include greater manufacturing offsets in India. The two sides are also exploring cooperation on future combat air systems, including engines and advanced avionics.

India’s Defence Research and Development Organisation (DRDO) and French industry representatives have also held technical exchanges on propulsion technologies, reflecting New Delhi’s ambition to strengthen indigenous jet engine capabilities.

Beyond air power, cooperation spans space and maritime security. France has supported satellite launches and space situational awareness initiatives with India’s space authorities, while naval exercises such as Varuna have grown in scale and complexity.

To this end the joint statement called for enhanced maritime domain awareness and coordinated patrols in parts of the Indian Ocean after emerging technologies featured prominently in the 2026 agenda.

As such, India’s Ministry of Electronics and Information Technology and French counterparts are examining joint work in cyber defence, artificial intelligence and secure communications, particularly where civilian innovation intersects with military applications.

For investors, the breadth of cooperation signals sustained capital expenditure in India’s defence sector. Budget allocations have risen steadily y/y, and localisation mandates are increasing opportunities for domestic manufacturers such as Bharat Electronics Limited (NSE:BEL).

At the same time, French suppliers including Safran (EPA:SAF), Airbus (EPA:AIR) and Dassault Aviation (EPA:AM) stand to benefit from long-term order pipelines tied to India’s modernisation drive. The structure of new agreements that are combining technology transfer, joint ventures and local assembly, may compress margins on direct exports but expand lifetime revenue through maintenance and upgrades.

If India proceeds with additional fighter and submarine orders, the scale of industrial integration could deepen further. As geopolitical competition intensifies across the Indo-Pacific and Europe, the visit underscores a defence partnership that has evolved from post-independence off the shelf aircraft purchases to comprehensive collaboration across air, sea, space and emerging technologies.

For both governments, the relationship blends strategic alignment with industrial pragmatism. For markets, it points to a durable flow of contracts and joint production programmes likely to shape India-France defence ties for years to come.