Macron lands in Bombay for explosive AI talks and India’s biggest-ever Rafale jet deal

Bombay, India’s financial capital, became the epicentre of high-stakes diplomacy as Emmanuel Macron met Narendra Modi for crucial bilateral talks focused on artificial intelligence cooperation and a potential multi-billion-dollar Rafale fighter jet deal.

The three-day visit marks Macron’s fourth trip to India since 2017 and signals deepening strategic ties between Paris and New Delhi. With defence procurement, AI innovation, and global geopolitical shifts on the agenda, the Bombay summit could redefine the India-France partnership.

AI Impact Summit 2026: India-France Innovation Push

A major highlight of the visit is the AI Impact Summit, where leaders from technology, policy, and business sectors are gathering to discuss ethical AI, innovation ecosystems, and global digital governance.

Modi and Macron jointly inaugurated the India-France Year of Innovation 2026, underscoring their shared ambition to collaborate in future-oriented sectors including artificial intelligence, aerospace, cybersecurity, and digital infrastructure.

The summit reinforces India’s position as a global tech powerhouse and France’s role as a European innovation leader. Officials described the AI partnership as central to the next phase of bilateral cooperation.

Rafale Deal: India’s Biggest Defence Acquisition in History?

At the heart of the discussions is a potential landmark agreement involving 114 additional Rafale fighter jets manufactured by Dassault Aviation.

India has reportedly cleared a proposal worth approximately Rs 3.25 lakh crore, which would make it the largest defence acquisition in the country’s history. If finalized, the deal would expand India’s existing fleet of 36 Rafale jets purchased in 2016 and 26 additional aircraft ordered for the navy.

The negotiations align with India’s broader strategy to reduce reliance on Russia for military hardware while boosting domestic production under the “Make in India” initiative. A majority of the jets are expected to be manufactured locally.

French officials have expressed optimism about reaching what they call a “historic” agreement.

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Strategic Partnership Expands Beyond Defence

Beyond fighter jets, the two leaders reviewed progress under the longstanding India-France Strategic Partnership. Talks included cooperation in aerospace, climate action, trade, and regional security.

Bombay also served as the venue for the inauguration of India’s first helicopter final assembly line, a joint venture between the Tata Group and Airbus. The facility in Karnataka will manufacture the Airbus H125 helicopter, strengthening India’s aerospace manufacturing ecosystem.

Bilateral trade between India and France stands at approximately $18 billion annually, with defence and aviation forming a substantial share.

Global Geopolitics and Economic Uncertainty

The meeting comes amid global economic shifts and rising geopolitical tensions. Discussions reportedly touched on tariff policies under current U.S. President Donald Trump and China’s expanding influence in the Indo-Pacific region.

India, now the world’s most populous nation and on track to become the fourth-largest global economy, remains a crucial strategic partner for France in Asia.

Officials stated that both sides aim to diversify economic partnerships while strengthening security collaboration.

Why Bombay Matters

Choosing Bombay as the diplomatic stage underscores its importance as India’s financial nerve centre and innovation hub. Hosting global summits and defence negotiations in the city reinforces its growing geopolitical significance.

As AI innovation and defence modernization converge, the outcomes of this meeting could influence not just bilateral ties but also broader Indo-Pacific security dynamics.

FAQ

Why did Macron visit Bombay?

Emmanuel Macron visited Bombay to meet Prime Minister Narendra Modi for discussions on artificial intelligence cooperation, defence procurement, and broader strategic partnership initiatives.

What is the Rafale deal being discussed?

India has cleared a proposal worth approximately Rs 3.25 lakh crore to procure 114 Rafale fighter jets from Dassault Aviation. If finalized, it would be India’s largest defence acquisition.

How many Rafale jets does India already have?

India previously purchased 36 Rafale jets for its Air Force in 2016 and has ordered 26 additional jets for its Navy.

Is the new Rafale contract finalized?

Negotiations are ongoing between India and Dassault Aviation. While cleared at the proposal level, final contractual terms still need to be concluded.

What is the AI Impact Summit 2026?

The AI Impact Summit is a major innovation forum hosted by India focusing on artificial intelligence, digital governance, and emerging technologies, with France as a key partner.

What is the India-France Year of Innovation 2026?

It is a bilateral initiative aimed at boosting collaboration in technology, research, startups, aerospace, and digital transformation sectors.

How strong are India-France trade relations?

Bilateral trade stands at around $18 billion annually, driven largely by defence, aerospace, and aviation partnerships.

Why is India diversifying its defence suppliers?

India aims to reduce reliance on Russia and strengthen domestic defence manufacturing while expanding partnerships with countries like France.