India-France Economic Relations


  • Relations between India and France are multi-faceted, close and special. In the business sphere, current global trends and rapid socio-economic changes in Indiaare creating a range of new opportunities for the French and the Indian people to work together.
  • Noting that therewas considerable potential for expansion of economic ties, the leaders of the two nations have underlined theneed to encourage Indian and French business and industry to further increase bilateral trade and investmentsbetween the two countries.

India-Germany FDI synopsis

Share of France in FDI Equity Inflows in India (as on December 2016)

Rank: France ranks 9th

Percentage share of total FDI inflows: 1.75%

Cumulative FDI Inflows from France: US$ 5.15 billion

  • France has emerged as a major source of FDI for India with about 750 big French companies already present in India. France is the 9th largest foreign investor in India with a cumulative investment of USD 5.15 billion from April 2000 to May 2016 which represents 1.75% of the total FDI inflows into India according to statistics provided by the DIPP.
  • The highest FDI equity inflows are in the services sector (19.02%), with cement & gypsum products (16.49%) in second place, followed by drugs & pharmaceuticals (6.06%), food processing industries (5.86%) and industrial machinery (6.06%).
  • Most big French groups have their subsidiaries in India. However, there are a few joint ventures and liaison offices of French companies in India. 39 of the 40 CAC 40 (French Stock Market Index) companies are present in India. Around 50-70 SMEs are also present in India essentially in the mechanical and pharma-chemical sectors.
  • French investments cleared during 2015 include amongst others, proposals from Louis Vuitton Malletier (luggage & luxury leather goods), Freyssinet International &Compagnie (constructing heavy construction projects), Sanofi Pasteur (healthcare solutions), Safran Engineering Services (engineering services to the aerospace, energy & ground transport industries), Serap Industries (liquid & food preservation), Arkadin (conferencing services), Aubert & Duval (alloy steels, stainless steel & special steels), Beaujon (insurance & asset Management) and Péters Surgical (surgical sutures & meshes).

German Investment Inflow in the last few years

Year(April-March) From Germany(In US $ Millions) %age Share of Germany
2012-13 859.62 3.8
2013-14 1,038.42 4.3
2014-15 1,123.86 3.6

Share of top sectors attracting FDI Equity Inflows from Germany

(From April’14-March’15)

S.No. Sector Amount of FDI %of totalinflows
1. Automobile industry 231.9 20.6
2. Services sector 179.4 15.9
3. Construction (infrastructure) activities 175.6 15.6
4. Industrial machinery 69.6 6.2
5. Drugs & pharmaceuticals 69.3 6.2
6. Soaps, cosmetics & toilet preparations 58.3 6.2
7. Computer software & Hardware 51.0 4.5
8. Chemicals (other than fertilizers) 36.7 3.3
9. Miscellaneous industries 34.3 3.1
10. Electrical equipment 32.9 2.9
11. Scientific instruments 30.8 2.7
12. Consultancy Services 25.9 2.3
13. Metallurgical industries 19.8 1.8
14. Trading 18.9 1.7
15. Fermentation industries 16.8 1.5
16. Non-conventional energy 14.1 1.3
17. Railway related components 12.9 1.1
18. Ceramics 7.6 0.7
19. Construction Development 5.3 0.5
20. Textiles (incl dyed. printed) 5.1 0.4
  Others 28.7 2.5
  Total 1124.9 100

Details of top FDI inflows received from Germany

S. No. Name of Indian Company FDI Route Name of foreign collaborator
1. Apollo Energy Pvt. Ltd RBI DkyInil Health Holding
2. Bajaj Allianz LIC Ltd. RBI Allianz SE
3. Continental Automotive Components (India) RBI Continental Automotive GmbH
4. Daimler India Commercial Vehicles Pvt. Ltd RBI Daimler AG
5. Daimler India Commercial Vehicles Pvt Ltd RBI Daimler AG
6. Daimler Financial Services India Private RBI Daimler AG
7. Indian Oil Tanking Ltd. FIBP Oil Tanking India GmbH
8. John Deere (I) P. Ltd. RBI Deere and Co.
9. Lanxess India Pvt Ltd RBI Lanxess Deutschland GmbH
10. Man Force Trucks Pvt Ltd RBI Man Truck & Bus AG
11. Man Force Trucks Pvt Ltd RBI Volkswagan Financial Services AG
12. Metro Cash & Carry India Pvt. Ltd RBI Metro Cash& Carry International GmbH
13. Micro Inks Ltd FIBP MHM Holding GmbH
14. Neo Structo Construction Ltd RBI Bilfinger Berger Industrial Services GmbH
15. Saint Gobain Glass India Ltd FIBP Daimler AG
16. Siemens Ltd RBI Siemens Aktiengesellschaft
17. Sigma Freudenberg NOKPvt Ltd RBI Freudenberg SE
18. Triveni Polymers Pvt Ltd RBI GerresheimerGlas GmbH

List of Indian Companies in Germany

  • Amtek India
  • Bharat Forge group
  • Hindalco Industries( Aditya Birla Group)
  • Lupin Pharmaceuticals
  • Mahindra CIE Automotive Ltd.
  • SamvardhanaMotherson Group
  • Sona Group
  • Tata Consultancy Services
  • Tata Steel