France Offers Great Sops for Indian Businesses.

Mumbai: The relation between Indian and France go back hundreds of years. There’s a need to reshape it in the new globalized economy. France offers excellent sops for Indian companies to do business there.

Highlighting these was a seminar “Investment Opportunities in France” organized by CII. Mr. Francois Pujolas, Consul General, Consulate General of France, set the proceedings in motion when he said, “When France sees India we do not see business, we see a partner. It is a partnership that is global and balanced.”

Yet, highlighting the imbalance was Mr. Guillaume Page, Inward Investment Officer, Invest in France Agency, who informed that while there are 700 French companies in India employing 180,000 employees, there are only 100 Indian companies in France with 6000 employees. The purpose of this seminar was to display the benefits to open business in France and bridge the gap.

And France indeed offers unique business opportunities for India. France is not only the 2nd largest economy in Europe with access to 500 million consumers; it is also the gateway to business in the rest of Europe especially in the Schengen Zone and in 15 French speaking countries in Africa.

Amidst the European economies, France rank first in food, life sciences and aerospace industries, second in chemical industry and third in IT and automotive industry.

France is also an attractive investment destination for the world, with the nation being the third largest recipient of FDI in the world which India can surely take advantage of. It is also home to 23,000 foreign companies employing over 2.8 million people that account for 40% of French exports and 20% of their R&D spending.

Yet, language can play a major role in the mind of Indian companies wanting to invest or work in France. The fact that over 4000 American and 2600 British companies are successfully doing business in France makes this fear invalid.

Indian companies began business in France beginning with this millennium in 2000. Currently one third of Indian businesses in France is in the IT sector and second is Pharma with 15%. To increase Indo-French relationship there have been many important agreements and trade ties - that have been be achieved and are underway as well.

Besides these, over 50 market reform measures introduced by the French govt. in the last couple of years, has bolstered the attractiveness of France and made it much easier for Indian companies to do business there. These include flexibility of labour laws, taxation and incentives and facilitate busines mobility. A simple reform that makes overtime tax-free makes a great difference in attracting Indian workforce into the country.

The competitive cost of setting up business in France is also extremely less, being $97 for every $100 spent in USA to do the same. This is one of the lowest in Europe. There are also financial incentive to support investment projects like 0% interest rate loan to cover up for 40% of ones investment.

“Welcoming key talents to France is a key job of the French immigration. It is much more relaxed than rest of the world e.g. there is no quota for residence or work permits to go to France,” said, Ms. Fatia Bouteiller, Legal Expert, International Mobility, Invest in France Agency.  She informed of the convenience of applying for different kinds of visas to France.

“As a destination for doing business, France, despite its strong economic standing in the world, has largely been left unexplored by Indian businessmen. This lack, also offers opportunities to Indian businesses for rapid expansion and attractive short and long term profits, concluded,” Mr Kishore Kumar N S, Session Chair & Country Head- Investment Banking, HDFC Bank Ltd.

Source : orissadiary.com