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)|
French Companies Investing in India
|Alcoholic Beverage||Pernod Ricard|
|Banking and Finance||BNP Paribas|
|Electrical Components||Schneider Electric|
|Energy Management||Schneider Electric|
|Energy Trading||Louis Dreyfus|
|Fashion Accessories||Louis Vuitton|
|Industrial Gases & Chemicals||Air Liquide|
|Luxury Goods||Louis Vuitton|
|Pharmaceuticals||Sanofi-Aventis Pasteur India|
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||Axis Aerospace & Technology|
|Automotive Industry||Motherson Sumi Systems|
|Automotive Industry||Mahindra & Mahindra Ltd.|
|Chemicals, Plastics||Sintex Industries Ltd|
|Metal Forging||Bharat Forge|
|Railway wagons||Titagarh Wagons|
|Software & IT services||Infosys|
|Software & IT services||Wipro|