Projecting itself as a land of opportunities with favourable conditions, France has invited investments from India with a promise of helping companies to set up business there, including through acquisitions.
Paris views last year’s acquisition of European major Arcelor Steel by Mittal Steel of India-born L N Mittal as a successful example which can be replicated in France.
Government-run Invest In France Agency (IFA), tasked with attracting overseas business, has identified 300 Indian companies, mainly in IT and pharma sectors, as prospective investors in this country and plans to launch vigorous campaigns to tap these.
The Agency has recently set up an office in India to attract investments in France from the “emerging economy”.
“If the Indian companies want to be global players, they cannot ignore Europe…We are well located in Europe and will welcome Indian investments,” IFA Chairman and CEO Philippe Favre told a group of Indian journalists.
Noting that France was looking for investments from India in all sectors, he said the conditions, including tax and visa regimes, were favourable for this.
He insisted that there were immense opportunities for Indian investment in France and cited “better infrastructure and Research and Development facilities here than in the UK” to press his contention.
The investments by Indian companies in France would provide them access to European markets, their distribution networks, brands, technologies and expertise, said Favre, the French Ambassador for international investment.
Favre underlined that Indian companies setting up operations in this country will have the benefit of targeting entire Europe, the world’s largest market with about 500 million consumers.
He said the 300 companies identified as prospective investors already have international operations and are planning to expand, but did not identify them.
“Indian companies are hiring more and more people in Europe and we expect Indian investment in France to grow,” Favre said.
Pointing out that France is the second largest economy after Germany in Europe, Favre said his country was, however, a better option for investment as “we are more open to acquisitions and mergers”.
He also sought to downplay the higher labour costs in France, saying these are comparative compared to other European countries and thus “not an issue”.
Though Indian investment in France has been growing over the past few years, it is below the potential, he said and cited “lack of information” in India about opportunities in France as a reason for it.
He suggested that the Indian business community prefer to invest in Britain thinking that the custom tariffs there are better suited.
“There is an English bias in India and opportunities in Europe for business are not reflected. This is a serious issue which needs to be addressed,” Favre said.
Recalling his visit to India last year, Favre said he noticed that the CEOs of many Indian companies did not know “even the basic facts, like the custom tariffs in European Union and the UK are the same”.
The IFA will be taking steps to apprise Indian companies about the prospects and rules and regulations in France.
He acknowledged that Indian companies had been facing visa problems for sending their skilled manpower to France, particularly for short term. “Now the regulations in France are much more flexible.”
Indian companies have already established their presence in France, creating about 1,000 jobs over the last six years. Most of Indian investment is targeted at the industrial, pharmaceutical, technology, finance and automotive sectors.