International Finance Foreign Investment
The French government plans to offer loans at the rate of zero percent to Indian companies willing to invest in the country. Indian companies would also be able to attract more investments for offering job opportunities in France.
As the world emerges from the scars of the global recession, there exists a huge potential for trade between India and France as most Indian companies eying global diversification are looking at Europe as a preferred destination to increase trade activities.
In the UK alone, nearly 700 Indian companies have established their base, of which over 100 companies are in France. These numbers are expected to increase to a considerable extent in the coming years due to the incentives being offered by the governments to attract more investments from Indian companies.
The French government would be providing financial incentives like zero interest rate loans to support companies setting up projects in France. For availing the facility, Indian companies would have to invest a minimum of Euro-5 million and guarantee a minimum of 25 jobs in three-years of their establishment. Investments are expected from sectors including IT, automotive, steel, logistics, and pharma. Such companies setting up establishments in France would be offered loans of upto 40% of their investment investments at zero percent interest rate.
At an event organized by CII, Invest in France Agency's Inward Investment Officer, Guillaume Page, said that bilateral trade between India and France is expected to grow by 62% by 2012. "Before the recession, we expected the trade to go upto USD 18-billion by 2012. But now we expect it to rise to USD 13-billion from USD 8-billion recorded in 2009," Page said.