The bilateral trade between India and France had fallen from ¤6.78 billion to ¤5.36 billion mainly due to the global economic slowdown and had hurt several small and medium enterprises (SMEs) in both countries.
While many of the big Indian companies like Infosys and TCS have set up shop in France, the MSMEs have not gone far enough in investing in France. Both countries are encouraging SMEs to do business and work with each other in developing new technologies and enhancing trade.
France, which is one of the biggest markets for Indian handicrafts, has a large concentration of MSMEs. With bilateral trade ties likely to improve further between the countries, it is expected that small exporters in this sector as well as other segments that ship consignments to France can directly translate to increased revenues for Indian SMEs by way of either direct trade or sub-contracting a step-up in India’s trade with France.
SMEs dominate sectors like textiles, handicrafts, agro products, auto parts and leather products among others. J Leviol, director of Invest in France Agency and the minister counsellor for economic, trade and financial affairs, said France was focussed on innovation, immigration and R&D.
France, which had been in the doldrums due to an inflexible labour market, has now reformed it’s labour market to make itself more competitive.
In 2007-08 there were a few reforms made which allowed for greater incentives for employees to work more; gave greater freedom for companies to organise the working week and gave greater flexibility in the labour market.
In addition to that there had been a loosening up of some regulations that enabled retailers to open on Sundays.