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Journalism of Courage
Indian companies have significant business avenues to tap in France but domestic players seem to be slow in taking advantage of such opportunities amid misconceptions about the European nation,says a study.
The study was done by global consultancy PwC on behalf of the Embassy of India in Paris.
“Significant opportunities are waiting for Indian companies in France,but to date they have been slow to take advantage of these,” the report said.
Titled ‘Investing In France – Opportunities and insights for Indian companies’,the study pointed out that many Indian companies know little about France — such as its economic strength — while others have a “number of negative misconceptions”.
As per the report,investment flows between the two nations averaged only 26 million euros per annum in 2009 and 2010.
“Total stock of Indian investment in France is estimated to total just 362 million euros,compared with French investment in India of 2.9 billion euros,” it added.
There are around 100 companies in France which are subsidiaries of Indian groups or which have Indian owners.
Even though investments and trade between the two countries have been on the rise in recent times,the flows are relatively low in comparison with sizes of Indian and French economies.
“In particular,Indian investment in France is very low,the most recent figures available show a total stock of only 362 million euros,” the study said.
It noted that in this period,FDI outflows from India averaged nearly USD 16.3 billion per annum. “Based on the inward FDI data available for France,this would imply that France has received less than 0.3 per cent of these outflows,” it added.
Going by estimates,Indian exports to France now exceed French exports to India by over 70 per cent. Further,French market accounts for just about two per cent of Indian exports.
India’s exports to France are mainly plastics and other synthetic materials derived from petroleum products,clothing and shoes. On the other hand,major exports from France to India are related to aerospace and other manufactured products.
Among the suggestions made to boost bilateral investment between the two nations,the study has said misconceptions about France have to be eliminated.
