India and France have set the target to achieve euro 12 billion worth of bilateral trade by 2012, with the two countries vowing to forge deeper ties across all sectors and boost two-way investment. More than 100 French companies have also committed to putting in euro 10 billion in the next couple of years.
Some big-ticket investment plans were announced by the visiting French business delegation today. These include the setting up of two new nuclear generation power plants, or European Pressurised Reactors (EPRs), in Jaitapur, to be developed by French nuclear giant Areva and the $1-billion investment by Michelin to set up a radial tyre manufacturing unit near Chennai.
“This year, we hope that the bilateral trade would reach $8 billion. The two countries today had delegation-level talks, which turned out to be substantive and meaningful. We also established institutional engagements. Besides cooperation in nuclear energy, we also identified some priority sectors like infrastructure, ICT, pharmaceuticals, agro-processing and food processing,” Commerce and Industry Minister Anand Sharma told reporters after talks with French Minister of Economy and Finance Christine Lagarde, here today.
At present, around 750 French companies are present in India, employing 200,000 people. The French delegation has also assured India of supporting the feasibility study for a project to clean the Ganga.
The delegation is accompanying French President Nicolas Sarkozy.
Highlighting India’s concerns to protect farmers, Lagarde said there was a need to open the multi-brand retail sector. French conglomerate Carrefour has long been planning to enter the Indian retail.
“The euro 10-billion commitment by French companies to invest in India between 2008 and 2012 could be a lot more, if opportunities come up by the opening of insurance and multi-brand retail. French companies would respond in a rigorous manner,” Lagarde said.
Allaying her concerns, Planning Commission Deputy Chairman Montek Singh Ahluwalia said removing foreign direct investment (FDI) cap on insurance and multi-brand retail was very much on the government’s agenda.
“We are looking into it. However, policy formulations must involve all stakeholders,” Sharma said. India and France also signed a memorandum to boost investment flows. The MoU was signed by Invest India, Invest in France Agency and Ubifrance, the French agency for international business development.
