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-France 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).

FDI equity inflows from France

Year (March- April) FDI Equity Inflows From France (in US$ Millions)
2014-15 634
2015-16 598
2016-2017(April’16-Sep’16) 183
French Companies Investing in India
Industry Company
Alcoholic Beverage Pernod Ricard
Automobiles Renault
Automobiles Faurecia
Automobiles Michelin
Automobiles Plastic Omnium
Automobiles Valeo
Banking and Finance BNP Paribas
Cement Lafarge
Chemicals Arkema
Construction Vicat SA
Cosmetics Christian Dior
Cosmetics Clarins
Cosmetics L’Oreal
Cosmetics Vichy
Dairy Products Danone
Electronics Crouzet
Electronics Gemalto
Electronics Oberthur Technologies
Electronics Safran
Electronics STMicroelectronics
Electrical Components Hager
Electrical Components Legrand
Electrical Components Schneider Electric
Energy GDF Suez
Energy Management Schneider Electric
Energy Trading Louis Dreyfus
Environmental Services Veolia
Eyewear Designer Essilor
Fashion Accessories Louis Vuitton
Film Production Armateurs
Furniture Gautier
Glass Manufacturer Saint-Gobain
Healthcare Sanofi Aventis
Industrial Gases & Chemicals Air Liquide
Luxury Goods Louis Vuitton
Management Consultancy Capgemini
Pharmaceuticals Sanofi-Aventis Pasteur India
Rail Transportation Alstom
Telecom Alcatel-Lucent
Indian Investments in France
  • There are almost 75 Indian companies operating in France (more than 120 including sub-subsidiaries), employing more than 7,000 people.
  • Twelve new Indian investments were recorded in 2015, creating or maintaining 290 jobs. 42% of Indian investments in France were in production/manufacturing, 33% were in business services, followed by 17% in decision-making centres.
  • Tata Group, Mahindra & Mahindra, Mahajan Group and Motherson Sumi are the four largest Indian employers in France.
  • The following Indian companies invested in France in 2015: Mahindra & Mahindra which acquired 51% share of Peugeot Two-Wheelers and Bharat Forge which acquired MécaniqueGénéraleLangroise (MGL). 

Indian Companies Investing in France

Sector Name of Indian Company
Aerospace Cades
Aerospace Axis Aerospace & Technology
Automotive Industry Motherson Sumi Systems
Automotive Industry Mahindra & Mahindra Ltd.
Auto parts Jyoti
Chemicals, Plastics Sintex Industries Ltd
Metal Forging Bharat Forge
Pharmaceutical Ranbaxy
Pharmaceutical Wockhardt
Railway wagons Titagarh Wagons
Software & IT services Infosys
Software & IT services Wipro
Steel Tata Steel
Steel Electrosteel
Wine Kingfisher