India-France Economic and Commercial Relations
1. France is the 5th largest economy of the world with a total GDP of € 2.8 trillion in 2017 with a GDP growth rate of 1.9% in 2017. It had a Per Capita GDP (PPP) of € 33,036 in 2017. France is an important member of the G-8, OECD and G-20. Its technological strengths make it the leader in sectors such as aviation, space, food processing, transport, railways and agricultural research. However, France's business interaction with India is not commensurate with its intrinsic economic capacity.
2. The economic and commercial linkages are an important component of India's bilateral relations with France. The economic reforms process in India, ten Prime Ministerial visits from India to France (in 1992, 1995, 1998, 2003, 2005, 2008, 2009, 2011, 2015 & 2017), the visit of our President to France (in 2000), visit of the French Prime Minister to India (in 2003), the visits of the French President to India (in 1998, 2006, 2008, 2010, 2013, 2016 & 2018) and the growing French interest in establishing their presence in Asian markets including in India have all contributed to a broadening of economic links. The series of high-level visits in the commercial and economic field reflects the growing interest of both the governments in expanding trade between the two countries. France considers India an important market for its products and is looking to increase the number of joint ventures and encouraging investments in and from India.
3. French global trade increased by 5.62% in 2017 with French exports and imports increasing by 4.54% & 6.55% respectively over 2016 figures. In top ten category products, there was a decline in exports of aircraft & spacecraft while all other products registered an increase in exports: nuclear reactors, boilers, machinery & mechanical appliances; automobiles; electrical machinery & equipment; pharmaceuticals; plastics and articles thereof; beverages & spirits; essential oils; optical/photographic/measuring instruments; & iron & steel. French imports also increased by 6.55% in 2017. In top ten category products, there was a decline in imports of aircraft and spacecraft while all other products registered an increase: nuclear reactors, boilers, machinery and mechanical appliances; vehicles other than railway or tramway rolling-stock; mineral fuels, mineral oils & products; electrical machinery and equipment; plastics and articles thereof; pharmaceuticals; optical/photographic/measuring instruments; organic chemicals; and iron & steel. The trade deficit during 2017 stood at € 79.1 billion against € 65.8 billion for the previous year. France’s bilateral trade with other leading partners is as follows: USA (+0.55%); China (+9.21%); Japan (+4.23%); UK (+14.02%); Germany (-1.77%). Germany was France’s largest partner in 2017 accounting for 15.37% of French trade, followed by China and USA. France-China trade accounted for 7.44% of France’s total foreign trade.
4. Bilateral Trade in Goods (January to December 2017)
India’s main exports to France include: garments (18.55% share); mineral fuels & oils (10.12%); nuclear reactors, boilers, machinery & mechanical appliances (7.60%); vehicles other than railway or tramway rolling-stock (6.31%); electrical machinery & equipment (5.62%); organic chemicals (5.17%); footwear (4.70%); leather articles (3.43%) and gems & jewellery (3.27%).
Top French exports to India include: aircraft & spacecraft (42.38%); nuclear reactors, boilers, machinery & mechanical appliances (15.16%); electrical machinery & equipment (13.57%); optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments & apparatus (4.09%); organic chemicals (2.91%); plastics & articles thereof (2.52%); pharmaceuticals (2.10%); iron & steel (1.99%); miscellaneous chemical products (1.73%) & articles of iron or steel (1.19%).
In 2017, India-France bilateral trade stood at € 10.69 billion (+24.6%) as compared to the corresponding period the previous year. India’s exports to France were valued at € 5.35 billion, up 14.49% during this period with a rise in exports of following top 10 category products: mineral fuels & oils (139.01%); nuclear reactors, boilers, machinery and mechanical appliances (13.73%); automobiles and parts (32.61%); electrical machinery (7.17%), footwear (2.81%), gems and jewellery (1.31%)). However, there was a drop in exports of, knitted or crocheted articles of apparel & clothing accessories (-1.35%) & non knitted or crocheted articles of apparel & clothing accessories (-1.28%) & organic chemicals (-0.62%) articles of leather (-1.7%).
Meanwhile, French exports to India increased by 36.69% during the same period to € 5.344 billion. Exports of following top 10 ranked products increased: aircraft & spacecraft (106.13%); nuclear reactors, boilers, machinery & mechanical appliances (55.52%); miscellaneous chemical products (5.84%); electrical machinery & equipment (15.87%), organic chemicals by (2.79%) & plastics and articles thereof (9.2%). However, exports of optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof fell by 19.83%, & those of iron & steel by -25.54%, articles of iron & steel by -30.44% & pharmaceutical products (-6.46%).
India-France Trade in Goods in the last 10 years (in Million €)
|
Year
|
Indian Exports to France
|
French Exports
to India
|
Total Trade
|
Balance of
Trade
for India
|
% Change (YoY)
in total trade
|
|
2008
|
3,461
|
3,327
|
6,787
|
+131
|
+10.62%
|
|
2009
|
2,911
|
2,460
|
5,371
|
+447
|
-20.86%
|
|
2010
|
4,130
|
2,900
|
7,030
|
+1,227
|
+30.83%
|
|
2011
|
4,696
|
2,769
|
7,465
|
+1,927
|
+6.23%
|
|
2012
|
4,656
|
3,256
|
7,912
|
+1,400
|
+5.98%
|
|
2013
|
4,440
|
2,713
|
7,153
|
+1,727
|
-9.59%
|
|
2014
|
5,216
|
2,704
|
7,920
|
+2,502
|
+10.70%
|
|
2015
|
5,218
|
2,703
|
8,548
|
+2,196
|
+7.91%
|
|
2016
|
4,669
|
3,910
|
8,580
|
+759
|
+0.37%
|
|
2017
|
5,351
|
5,344
|
10,695
|
+700
|
+24.60%
|
Source: French Ministry of Economy, Finance & Industry (Data rounded off to nearest million €)
|
|
|
Top 10 Indian Exports
to France
|
Jan.-Dec. 2016
|
Jan.-Dec. 2017
|
Jan.-Dec. 2017
|
Jan.-Dec. 16 /Jan.-Dec. 17
|
Jan.-Dec. 2017
|
|
S. N°
|
HS2
|
Commodity
|
Million €
|
Million €
|
Million USD
|
% Growth
|
% Share
|
|
1.
|
27
|
Mineral fuels, mineral oils & products of their distillation; bituminous substances; mineral waxes
|
226,67
|
541,76
|
612,19
|
139,01
|
10,12
|
|
2.
|
62
|
Articles of apparel and clothing accessories,
not knitted or crocheted
|
524,11
|
517,42
|
584,69
|
-1,28
|
9,67
|
|
3.
|
61
|
Articles of apparel and clothing accessories
knitted or crocheted
|
481,49
|
474,99
|
536,73
|
-1,35
|
8,88
|
|
4.
|
84
|
Nuclear reactors, boilers, machinery & mechanical appliances; parts thereof
|
357,36
|
406,44
|
459,27
|
13,73
|
7,60
|
|
5.
|
87
|
Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof
|
254,71
|
337,77
|
381,68
|
32,61
|
6,31
|
|
6.
|
85
|
Electrical machinery & equipment and parts thereof; sound recorders & reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles
|
280,84
|
300,99
|
340,11
|
7,17
|
5,62
|
|
7.
|
29
|
Organic chemicals
|
278,60
|
276,87
|
312,86
|
-0,62
|
5,17
|
|
8.
|
64
|
Footwear, gaiters and the like; parts of such articles
|
244,45
|
251,32
|
283,99
|
2,81
|
4,70
|
|
9.
|
42
|
Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk-worm gut)
|
186,57
|
183,39
|
207,23
|
-1,70
|
3,43
|
|
10.
|
71
|
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal & articles thereof; imitation jewelry; coin
|
172,77
|
175,03
|
197,79
|
1,31
|
3,27
|
|
|
|
Total of French Imports from India
|
4,673.94
|
5,351.17
|
6,046.82
|
14,49
|
100
|
Trends in 2018
Trade
In Jan.-June 2018, India France bilateral trade stood at € 5.2 billion (-0.56%) as compared to the corresponding period the previous year. India’s exports to France increased by 6.11% during this period with a rise in exports of following top 10 category products: mineral fuels & oils (85.16%); optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof (28.73%); nuclear reactors, boilers, machinery and mechanical appliances (13.26%); footwear (4.87%) & knitted or crocheted articles of apparel & clothing accessories (1.84%). However there was a drop in exports of automobiles and parts (-36.15%); electrical machinery (-17.42%); articles of apparel & clothing accessories, not knitted or crocheted (-3.07%) & natural or cultured pearls (-3.04%).
Meanwhile, French exports to India decreased by -8.57% during the same period. Exports of following top 10 ranked products increased: optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus & parts thereof (17.44%) & articles of iron & steel (8.61%). However, exports of following products decreased: electrical machinery & equipment (-32.24%); iron & steel (-14.33%); aircraft & spacecraft (-10.81%); organic chemicals (-3.06%); miscellaneous chemical products (-2.98%); plastics and articles thereof (-2.22%) & nuclear reactors, boilers, machinery & mechanical appliances (-1.91%).
Top 10 Indian Exports to France from January to June 2018
|
|
|
Top 10 Indian Exports to France
|
Jan.-June 2017
|
Jan.-June 2018
|
Jan.-June 2018
|
Jan.-June ‘17 / Jan.-June ‘18
|
Jan.-June 2018
|
|
S. N°
|
HS2
|
Commodity
|
Million €
|
Million €
|
Million US$
|
% Growth
|
% Share
|
|
1.
|
27
|
Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes
|
283,24
|
524,45
|
634,59
|
85,16
|
17,24
|
|
2.
|
62
|
Articles of apparel and clothing accessories, not knitted or crocheted
|
318,95
|
309,16
|
374,08
|
-3,07
|
10,16
|
|
3.
|
61
|
Articles of apparel and clothing accessories knitted or crocheted
|
255,61
|
260,32
|
314,99
|
1,84
|
8,56
|
|
4.
|
84
|
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof
|
199,96
|
226,48
|
274,05
|
13,26
|
7,44
|
|
5.
|
29
|
Organic chemicals
|
165,98
|
165,30
|
200,02
|
-0,40
|
5,43
|
|
6.
|
64
|
Footwear, gaiters and the like; parts of such articles
|
134,05
|
140,58
|
170,10
|
4,87
|
4,62
|
|
7.
|
85
|
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles
|
162,74
|
134,40
|
162,62
|
-17,42
|
4,42
|
|
8.
|
87
|
Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof
|
186,60
|
119,15
|
144,17
|
-36,15
|
3,92
|
|
9.
|
71
|
Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coin
|
89,90
|
87,17
|
105,48
|
-3,04
|
2,86
|
|
10.
|
90
|
Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof
|
67,47
|
86,85
|
105,09
|
28,73
|
2,85
|
|
|
|
Total of French Imports from India
|
2867,46
|
3042,68
|
3681,64
|
6,11
|
100,00
|
Source: French Customs
5. Bilateral Trade in Services
Based on annual data provided by the French Central Bank (Banque de France), Indian exports of services to France in 2017 (Jan. to Dec.) recorded an increase of 39.26% as compared to the same period of the previous year (January to December) from € 1.77 billion to € 2.47 billion. All categories of services registered a growth (in descending order): pension & insurance services (+454.54%); maintenance & repair services (+183.33%); building & public works (+150%); financial services (+76.66%); telecommunication, computer & information services (+56.72%); manufacturing services supplied by physical inputs held by third parties (+46.15%); other services to businesses (+33.14%); travel (+32.21%); commission for use of intellectual property (+21.42%) & transport (+16.24%).
Indian imports of services from France during the same period also registered a growth of 18.66% last year from € 1.46 billion in 2016 to € 1.73 in 2017. The following categories contributed to this increase: pension & insurance services (+45%); travel (+35.65%); commission for use of intellectual property (+29.29%); telecommunication, computer & information services (+23.71%); financial services (+19.04%); transport (+13.11%) & other services to businesses (+10.11%).
Manufacturing services supplied by physical inputs held by third parties have gone down by 34.92% and the maintenance & repair services declined by 32.75%.
India-France Trade in Services over the last 5 Years (in Million €)
|
Year
(Jan.-Dec.)
|
Indian Exports to France
|
French Exports to India
|
Total
|
%age of Increase/Decrease
|
|
2013
|
1,635
|
1,287
|
2,922
|
+10.63
|
|
2014
|
2,149
|
1,531
|
3,680
|
+25.94
|
|
2015
|
1,715
|
1,695
|
3,410
|
-7.33
|
|
2016
|
1,775
|
1,463
|
3,238
|
-5.04
|
|
2017
|
2,472
|
1,736
|
4,208
|
+29.95
|
Composition of India-France Trade in Services in 2017 (in Million €)
|
|
Major Categories of Services
|
Indian Exports to France
|
Indian Imports from France
|
|
1.
|
Manufacturing services supplied by physical inputs held by third parties
|
114
|
41
|
|
2.
|
Maintenance & repair services
|
51
|
154
|
|
3.
|
Transport
|
322
|
526
|
|
4.
|
Travel
|
316
|
350
|
|
5.
|
Building & public works
|
5
|
0
|
|
6.
|
Pension & insurance services
|
61
|
29
|
|
7.
|
Financial services
|
53
|
25
|
|
8.
|
Commission for use of intellectual property
|
17
|
128
|
|
9.
|
Telecommunication, computer & information services
|
536
|
193
|
|
10.
|
Other services to businesses
|
940
|
283
|
|
11.
|
Cultural, leisure & personal services
|
52
|
1
|
|
12.
|
Goods & services of public administration
|
0
|
0
|
|
13.
|
Other services (not included elsewhere)
|
0
|
0
|
|
|
Total
|
2,472
|
1,736
|
6. French Investments in India
France has emerged as a major source of FDI for India with more than 1,000 French establishments already present in India. France is the 9th largest foreign investor in India with a cumulative investment of USD 6.24 billion from April 2000 to March 2018 which represents 1.65% of the total FDI inflows into India according to statistics provided by the DIPP. The highest FDI equity inflows are in the services sector (19.30%), with cement & gypsum products (15.59%) in second place, followed by drugs & pharmaceuticals (5.23%), industrial machinery (5.04%) and food processing industries (5.03%).
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 companies are present in a wide range of sectors: services (BNP Paribas, Capgemini, Havas, Sodexo, etc.); pharmaceutical-chemical (Arkema, L’Oréal, Sanofi, Total, etc.); aerospace (Airbus, Dassault, Eurocopter, Safran, Thales, etc.); agro-food (Bongrain, Danone, Lactalis, Lesaffre, Pernod Ricard, etc.); electronics (Crouzet, Gemalto, Oberthur, Safran, STMicroelectronics, etc.); construction mechanics (Alstom, Cermex, Legris Group, Poclain, Sidel, etc.); electrical components (Hager, Legrand, Schneider Electric, etc.); automobile (Faurecia, Michelin, Plastic Omnium, Renault, Valeo, etc.).
French investments cleared during 2017 include amongst others proposals from BioMérieux (in vitro diagnostics), Louis Vuitton Malletier (high end fashion leather goods products), Bolloré Africa Logistics (special purpose machinery), SendinBlue (consultancy, installation support & turnkey solutions) & Arval Service Lease (operating lease).
[According to the estimates from the French Embassy in India, French companies employ around 300,000 persons in India and have a turnover of more than USD 20 billion and have a minimum stock investment portfolio of USD 19 billion].
FDI Equity Inflows from France
|
Financial Year
(April-March)
|
FDI Equity Inflows from France
|
|
INR Crores
|
USD Million
|
€ Million
|
% Change YoY
|
|
2000-01
|
455
|
104
|
92
|
/
|
|
2001-02
|
488
|
108
|
95
|
+3.5
|
|
2002-03
|
533
|
111
|
98
|
+3.3
|
|
2003-04
|
176
|
38
|
33
|
-65.6
|
|
2004-05
|
536
|
117
|
104
|
+206.7
|
|
2005-06
|
82
|
18
|
16
|
-84.2
|
|
2006-07
|
527
|
117
|
103
|
+533.6
|
|
2007-08
|
582
|
145
|
128
|
+23.7
|
|
2008-09
|
2,098
|
466
|
412
|
+221.4
|
|
2009-10
|
1,436
|
302
|
267
|
-35.1
|
|
2010-11
|
3,348
|
734
|
649
|
+142.6
|
|
2011-12
|
3,110
|
662
|
586
|
-9.7
|
|
2012-13
|
3,487
|
646
|
571
|
-2.4
|
|
2013-14
|
1,841
|
305
|
270
|
-52.7
|
|
2014-15
|
3,881
|
634
|
587
|
+117.42
|
|
2015-16
|
3,937
|
598
|
544
|
+5.6
|
|
2016-17
|
4,112
|
614
|
574
|
+2.6
|
|
2017-18
|
3,297
|
511
|
414
|
-16.7
|
|
Cumulative Inflows
(April 2000 to March 2018)
|
33,934
|
6,236
|
5,061
|
/
|
Source: DIPP
7. Indian Investments in France
According to the ‘Business France Annual Report 2017’, a public operator supporting French investors in India and Indian investors in France, there are over 150 Indian companies operating in France (including sub-subsidiaries), employing around 7,000 people. Nineteen investments from India were recorded in 2017 (+73%), creating or maintaining 284 jobs (+66%). Indian projects often involved decision-making centres (42% of projects), including a global/European headquarters, and production/manufacturing operations (32%). Investments were mainly made in the software and IT services sector (26% of projects and 52% of jobs generated) and chemicals/plastics industry (21% of projects, 23% of jobs), while location-wise, Indian companies invested primarily in the Paris Region (Ile-de-France) (26% of projects), Nouvelle-Aquitaine (16%), Bourgogne-Franche-Comté (16%) and Hauts-de-France (16%).
India was the 30th largest foreign investor in France with cumulative FDI inflows amounting to € 267 million (as per 31st December, 2015 statistics provided by the French Central Bank). Indian investments in France have been growing and it is estimated that the total stock of Indian investments in France is approximately € 1 billion. Indian investment in France has come in different sectors such as pharmaceuticals (Sun Pharma & Wockhardt), ITeS (Infosys, Tata Consultancy Services & Wipro), wine (Kingfisher), steel (Electrosteel & Tata Steel), plastics (Sintex Industries), railway wagons (Titagarh Wagons), aerospace (Cades and Axis Aerospace & Technologies), Auto Parts (Jyoti), Two-wheelers (Mahindra&Mahindra), Metal Forging (Bharat Forge). Tata Group (ITeS & metallurgy) with a workforce of 1,500, Sintex Industries (chemicals & plastics) with 1,000-1,500 employees, Motherson Sumi Systems (automotive) with a workforce of 400-500, Centum India (electrical, electronic & IT equipment) with the same number of employees and Mahindra&Mahindra (automotive) with 400-500 employees are the five largest Indian employers in France. The following three Indian companies invested in France in 2017: i) Infosys Technology (the IT giant announced plans to move its business forward in France via a strategic partnership with CMA-CGM, the world’s third leading maritime transport company. Infosys will open a centre for development and innovation in Marseille (Provence-Alpes-Côte d’Azur Region), leading to 80 jobs and setting the standard for Marseille as a hub of expertise. There are also plans to open a training centre at some point.), ii) United Phosphorous (Dutch company Cerexagri is a subsidiary of United Phosphorous Ltd., and specializes in crop protection products. In 2017, it decided to invest € 15 million in a second production facility in Mourenx (Nouvelle-Aquitaine Region), creating around a dozen jobs. The company is also present in Bassens in the same region and in Marseille in the Provence-Alpes-Côte d’Azur Region) & iii) Zify Tech Solutions (This innovative startup announced plans to set up in Paris, creating 10 jobs. Zify’s flagship product is a dynamic, artificial intelligence-based mobile application for short-and-medium-distance urban travel. It aims to help people save on travel costs, thereby reducing congestion and making cities more sustainable).
According to the same ‘Business France Annual Report 2017’, France confirmed its status as an attractive location for foreign investment decisions in 2017, attracting 1,298 new investments projects (up 16% from 2016) that created 33,489 jobs. Foreign investments were received from 54 different countries in 2017, with European investments continuing to hold the upper hand: 58% of job-creating foreign investments in France originated in other European countries, followed by North America (23%) and Asia (13%). The leading source countries of businesses investing in France in 2017 were the United States (18%), Germany (16%), Italy (7%), the United Kingdom (7%) and Japan (5%). France (33%) is now seen as the second most attractive country in Europe after Germany (45%), ahead of the United Kingdom (29%).
8. Issues related to Trade Protection/Rejection of Indian Goods, Sanitary and Phytosanitary/Technical Barriers and other Non-Tariff Barriers
France, being a member of the EU, these issues relate to EU bodies, however, some EU actions originate in France. In 2017, there was only one case of border rejection of Indian products by the French authorities vis-à-vis 13 in 2017, 6 in 2015 and 12 in 2014. These related to mostly food-products on account of detection of banned substances or quantities above the minimum permissible levels being found during inspections.
9. Bilateral Mechanisms to promote Trade and Investments
India-France Joint Committee for Economic & Technical Cooperation (JCETC) was set up on 26th January, 1976 through an exchange of letters between the Ministers of Commerce and Foreign Trade. Meetings are held at Ministerial level alternately in Delhi and Paris. This Joint Committee is the major institutional mechanism for cooperation in the economic and technical sector. The 17th session of the Joint Committee was held on 24th October, 2017 in Paris. The entire gamut of bilateral economic and commercial relationship was reviewed at the meeting, and both sides agreed to continue and intensify cooperation.
Joint Working Groups (JWGs) at the senior official level have also been constituted through MoUs to deal with specific aspects of economic cooperation, including for Agriculture and Food Processing, IT & Telecommunications, Roads, Sustainable Urban Development and Energy. During the visit of French President to India (14-15 February 2013), the two countries further agreed to establish an annual bilateral Economic and Financial Dialogue (EFD) between the two Finance Ministries on economic and financial issues. The first such Economic and Financial Dialogue was held in Paris on 29th October 2013.
10. Bilateral Agreements/Memorandum of Understanding (MoU)
India and France have signed a number of Agreements to facilitate the expansion of commercial relations. Among these are the Double Taxation Avoidance Convention (DTAC) [where India has requested a protocol, to amend Article 28 to insert new disclosure norms on which bilateral consultations are continuing], MoU on cooperation in Tourism, MoU on Intellectual Property and a Social Security Exemption Agreement (SSA). In October 2012, India and France signed an Agreement for cooperation in the field of Sustainable Urban Development. Another MoU on Bilateral Cooperation in Food Industries Sector was signed on 24th October 2012. During the visit of French President to India (14-15 February 2013), the two countries concluded an MoU between the Ministry of Railways of the Republic of India and the French National Railways (SNCF) on Technical Cooperation in the field of Railway Sector as well as a General Framework Agreement between Oséo (the French Innovation Promotion Agency) and Technology Development Board (TDB) of India to establish a collaborative framework under which Oséo and TDB may carry out activities related to the exchanging of best practices and the setting up of coordinated measures to foster technological exchanges and innovation collaborations between companies, organizations and institutions of France and India. The following four agreements/MoUs were signed during the visit of Prime Minister Shri Narendra Modi to France on 10-11 April, 2015: i) MoU on cooperation in the field of renewable energy between the Ministry of New and Renewable Energy (MNRE), Government of India and the Ministry of Ecology, Sustainable Development and Energy, Government of France; ii) Railway Protocol between Indian Ministry of Railways and French National Railways (SNCF) on cooperation in semi high speed rail and station renovation; iii) MoU between National Skill Development Agency (NSDA), India and the National Commission for Vocational Qualifications (Commission Nationale de la Certification Professionnelle - CNCD); iv) Letter of Intent on Tourism. During French President François Hollande’s visit to Indian in January 2016, MoUs were signed in the presence of Prime Minister Narendra Modi and Mr. Hollande in the field of smart and sustainable cities and helicopter production as also JV agreements and Letters of Intent in the field of renewable energy/wind energy.
11. Agreement on Social Security
An Agreement on Social Security exemption was signed during Prime Minister’s visit in September 2008. The Agreement has been ratified by the two sides and has come into force on 1st July, 2011. The agreement will protect the interests of expatriate workers and the companies on a reciprocal basis. It helps workers by (i) providing for exemption from social security contribution in case of short-term contracts; (ii) exportability of pension in case of relocation to the home country or any third country; and (iii) totalization of the contribution periods.
12. VIE (Volontariat International en Enterprise)
Voluntary International Apprenticeship Program: Under this scheme, started in 2008, young French interns/graduates are sent to French companies in India as trainees for a period of one year. The cost is borne by the company utilizing the trainee, with Government defraying certain costs and offering tax subsidies to companies utilizing the scheme. At present there is a cap of 250 visas per annum under the scheme, and the validity of the scheme has been extended till September 2020.
13. CEOs Forum
During French President’s visit to India in January 2008, it was decided to establish an India-France Foundation which could begin as an India-France high level CEO’s Round Table. An announcement was made during PM’s visit to France in September 2008 to set up an India-France High level CEOs Forum. The Indian side is headed by Mr. Dhruv Sawhney, Chairman, Triveni Engineering & Industries (earlier by Mr. Narayana Murthy, Chief Mentor of Infosys). The French side is headed by Mr. Paul Hermelin, CEO, Capgemini, and Special Representative of the French Government for Indo-French Economic Relations. The 1st meeting of the Forum was held in New Delhi on 28-29 November 2009; 2nd meeting took place on 24-25 June 2010 at Paris; 3rd meeting was held in New Delhi on 6th December 2010; 4th meeting held in Paris on 30-31 January 2012; 5th meeting of the Forum held in New Delhi on 22-23 November 2012 which discussed issues related to India-France collaboration on various PPP projects in infrastructure, sustainable development with focus on energy efficiency and corporate social responsibility, especially in the field of promoting education. During the visit of the French President to India on 14-15 February 2013, the CEO’s forum presented its recommendations on Private-Public Partnerships, Corporate Social Responsibility and Sustainable Development to the two governments. The 6th meeting of the CEO Forum was held in Paris on 8-9 July 2013. The meeting discussed issues related to Education and employability through skill building. The Indian CEOs called on the French President and were assured that they would be treated at par with French businesses when investing in France. The 7th meeting of the CEO’s Forum was held in Paris, France on 9th April 2015 as a precursor to the visit of the Prime Minister Shri Narendra Modi to France in April, 2015. The French Minister of Foreign Affairs and International Development, Mr. Laurent Fabius, was present at the Forum as also Secretary, Department of Industrial Policy and Promotion (DIPP), Mr. Amitabh Kant. 30 CEOs took part in this event. The topics discussed included Energy, Water, Agro and Food Processing, Skill Development and Education, Defence and Aerospace and Life Sciences. There was a decision to constitute five Task Forces with designated Sherpas on (i) Energy (conventional and renewable) (ii) Water and Waste (iii) Life Sciences (iv) Defence & Aerospace and (v) Infrastructure Financing; the 8th meeting of the Forum was held in Chandigarh on 24th January 2016 during the visit of President Hollande to India. The French Finance Minister Mr. Michel Sapin and Secretary Department of Industrial Policy and Promotion (DIPP), Mr. Amitabh Kant attended this session. Projects were proposed in the following identified sectors: defence, green economy, smart cities, infrastructure & transportation, water, and financial sector. The 9th meeting of the Forum was held in Paris on 13th January, 2017. The Forum was convened in the presence of Mr. Michel Sapin, the Minister of Economy and Finance. Members reviewed the progress since the last meeting which was held in Chandigarh on 24th January, 2016 on the sidelines of the visit of President Hollande to India. The topics discussed included Smart Cities - Transport & IT, Infrastructure, Energy & Water and Defence. The 10th CEO’s Forum was held on 10th March, 2018 in New Delhi during President Macron’s official visit to India.
14. India-France Economic Cooperation through AFD (French Agency for Development)
Pursuant to signing of a MoU in September 2008 between Department of Economic Affairs (DEA) and the French Agency for Development, the AFD extends credit for various projects in India. The priority areas for AFD economic cooperation in India are (i) energy efficiency and renewable energy within the framework of the National Action Plan on Climate Change (NAPCC), (ii) urban infrastructure (public transport, water, etc., through sustainable development projects and infrastructure development programmes such as JNNURM), and (iii) the preservation of biodiversity. The current projects being supported by the AFD include (i) ‘Reorganizing the Water Supply System of Jodhpur City in Rajasthan’, Phase II worth € 71.1 million (ii) ‘Forestry and Bio-diversity Conservation Project in Assam’ worth € 54 million (iii) Credit Facility Agreement (CFA) for the Bangalore Metro Rail Project, Phase-I (iv) IREDA II and (v) Cochin Metro Project.
15. India-France Business Associations in France
France-India Chamber of Commerce and Industry (CCIFI, Neuilly-sur-Seine) was created in 1984 as a non-profit organization that aims to promote bilateral commercial relations between India and France. It has as its members several Indian and French companies. The Mission has been working with CCIFI to promote bilateral relations through joint activities. The Chamber brings out a fortnightly newsletter in French and English which provides information in brief on various topics pertaining to economy, trade and industry.
With the support of the Mission, an India-France Business Club was started in January 2014 in Marseille, the second largest city in France after Paris and the largest port to assist Indian businesses, entrepreneurs and to generate interest about India among the French businesses in the region.
16. Activities for promoting Trade and Investment
Promotion of economic and commercial relations between India and France is a major priority for the Mission and the E&C Wing, under the direction and guidance of the Ambassador, works to promote Indian business and industry by encouraging trade and investment, assisting Indian firms with Government and private sector contacts, providing information, supporting and advising Indian companies about the French market.
The major commercial activities of the Mission include: (i) promotion of Indian goods and services in France, (ii) promotion of Brand India and corporate image of India, (iii) promotion of India as a foreign direct investment destination and (iv) promotion of the ‘Make in India’ campaign. In each of these sectors, the specific action involves information and intelligence gathering, communication and information dissemination, referral activities, advocacy, logistic management and coordination activities.
17. Recent Ministerial Visits from India to France
5-6 October, 2015 - Visit of Shri Venkaiah Naidu, Minister of Urban Development, to Bordeaux to attend a Global Intelligent Transportation Summit. During his visit, he also met France’s Minister of the Environment, Energy and Marine Affairs, Ms. Ségolène Royal, in Paris.
11-12 April, 2016 - Visit of Shri Suresh Prabhu, Minister of Railways to discuss the possible Areas of Cooperation between India and France in the Railway Sector. The Minister also addressed the ‘Emerging Forum’ organized by the Banque de France in Paris. He met Minister of State for Railways, Mr. Alain Vidalies, and also paid a courtesy call on Mr. Laurent Fabius, President of the Constitutional Council of France.
1-2 June, 2016 - Visit of Smt. Nirmala Sitharaman, Minister of State (Independent Charge), Commerce and Industry, to attend the Informal Gathering of the WTO Ministers on the margins of the OECD Ministerial Council Meeting in Paris.
1-5 September, 2016 - Visit of Smt. Smriti Zubin Irani, Minister of Textiles to Paris during the ‘Who’s Next & Première Classe’ Textile & Garments Exhibition. She met Mr. Marc-Antoine Jamet, Secretary General of LVMH, the French luxury goods group.
18-20 October, 2016 - Visit of Smt. Harsimrat Kaur Badal, Minister of Food Processing Industries, during the ‘SIAL’ Food Fair in Paris. She met French Minister of Agriculture, Food & Forest, Mr. Stéphane Le Foll.
17-20 October, 2016 - Visit of Dr. Subash Bhambre, Minister of State (Defence Production), for ‘Euronaval’ Defence Exhibition. During his visit, he also called on French Defence Minister, Mr. Jean-Yves Le Drian.
06-07 June, 2017 - Visit of Shri Arun Jaitley, Finance Minister, for the Annual OECD Ministerial Council Meeting in Paris.
8th June, 2017 - Visit of Smt. Nirmala Sitharaman, Minister of State (Independent Charge) for Commerce & Industry, to take part at the Ministerial Meeting for WTO Negotiations on the sidelines of the OECD Ministerial Council Meeting in Paris.
19-23 June, 2017 - Visit of Shri Prakash Pant, Minister of Finance, Govt. of Uttarakhand, to participate at the ‘India Skill Week’ in Paris.
19-23 June, 2017 - Visit of Shri Priyank Kharge, Minister of Tourism & Information Technology, Govt. of Karnataka for the ‘Paris Air Show’.
23-24 October, 2017 - Visit of Shri C.R. Chaudhary, Minister of State of Commerce and Industry, for the 17th Session of the India-France Joint Commission Meeting in Paris.
07-08 November, 2017 - Visit of Shri R.K. Singh, Minister of State (Independent Charge) for Power and New & Renewable Energy, for the ‘2017 International Energy Agency Ministerial Meeting’ at the International Energy Agency in Paris.
12 December, 2017 - Visit of Shri R.K. Singh, Minister of State (Independent Charge) for Power and New & Renewable Energy, for the ‘One Planet Summit’ organized by the French Foreign Office in Boulogne-Billancourt (Paris Region).
22 May, 2018 - Visit of Shri Ponnaiah Ayyapan Radhakrishnan, Minister of State for Finance and Shipping, to Monaco for Meetings with the Minister of Foreign Affairs and the Minister of Finance and Industry.
31 May-4 June, 2018 - Visit to France of Shri Suresh Prabhu, Minister of Commerce, Industry and Civil Aviation for an Informal Gathering of WTO Trade Ministers on the Sidelines of the OECD Ministerial Council Meeting in Paris. The Minister called on Mr. Laurent Fabius, President of the Constitutional Council and also met Ms. Elisabeth Borne, Minister of Transport to discuss Cooperation on Issues of Bilateral Importance. Shri Suresh Prabhu visited the Airbus Manufacturing Facility and also saw the IndiGo Passenger Planes being built at Toulouse. He finally had discussions with Mr. Fatih Birol, Executive Director, International Energy Agency, on Issues regarding the World Energy Security.
18-19 June, 2018 - Visit to Paris of Smt. Sushma Swaraj, External Affairs Minister, to name the Indian Cultural Center.
Source: Embassy of India, Paris (as per 28th August, 2018)
