"FRANCE IS THE TOP EUROPEAN DESTINATION FOR FDI AND THE 3RD HOST COUNTRY FOR INDIAN INVESTMENT PROJECTS IN EUROPE"

The Diplomatist interviewed Mr. Eric Fajole, Trade Commissioner at the Embassy of France in India. He gave an overview of the trade, including the potential areas of cooperation between France and India and explained how Indian investors can choose France as the best entry door to not only the European but also the African market.

- 

FRANCE AND INDIA RECENTLY CELEBRATED THE 25TH ANNIVERSARY OF THE SIGNING OF THE INDO-FRENCH STRATEGIC PARTNERSHIP. ARE YOU SATISFIED WITH THE PRESENT LEVEL OF TRADE RELATIONS BETWEEN THE TWO COUNTRIES? WHAT MORE, ACCORDING TO YOU, NEEDS TO BE DONE?

Yes, Indo-French economic relations are very satisfactory, particularly in 2023 as we celebrate the 25th anniversary of our strategic partnership with India. In the post-Covid era, India's positioning is very interesting for European countries for supply chain related matters. Many French companies have already invested in India and are fully aligned with the Make in India policy, and will do more, both for the Indian market and the regional one as India is projecting itself as an alternative to China. More than 750 French companies, including almost all the forty biggest ones from the CAC40, are operating and developing their business in India, such as Capgemini, TotalEnergies, Schneider Electric, Sanofi, and Airbus - to name but a few. And in the past months, we have seen a growing interest from mid-cap companies as well in this market.

The Indian government is already successful in its policy to attract FDI in key sectors of the industry and giving its support through PLIS. The FDI inflow from France to India in FY 2020 - 21 reached a record of €3 billion with significant investments, such as ADP in GMR airports. Renault Nissan and the Stellantis group in the automotive sector made big announcements recently to increase production capacities in India, with a focus on EVs. We expect smart cities also to be key in the coming years. Indeed, France has technologies to offer to big cities to tackle various issues -pollution, traffic, energy, waste and water management, for instance.

WHAT ARE THE KEY TRADE EXCHANGE OPPORTUNITIES BETWEEN FRANCE AND INDIA?