Abstract:
FDI from France has taken place in the various sectors in India like infrastructure, telecommunications and information technology. The major French companies that have helped to increase the flow of FDI from France to India are Thomson Multimedia, ALCATEL, France Telecom, ALSTOM and GTME.
Main investments by France in India:
Many French companies have made investments in the Indian telecommunications sector such as France Telecom which has entered into partnership with Sema Group and BPL
Mobile in Mumbai and Alcatel has made investments in the sector in Chennai, Gurgoan, and Bangalore. FDI from France to India has also come in the infrastructure sector which has gone mainly in the development of railways and roads. The French company GTMA has widened the road network between Delhi and Jaipur to four lanes in 1997. The other French companies that are active in the infrastructure sector of India are ALSTOM, CORYS TESS, and ALCATEL.
The French world leader Thomson Multimedia has entered the Indian multimedia industry by setting up a subsidiary company in Chennai and it has an important share in the color tubes market of the country. Foreign direct investment from France to India has also been made in the consumer sector such as home decoration, cosmetics & perfumes, and tableware. The major French brands that have entered the Indian consumer sector are Gotier, Baccarat, Louis Vuitton, ST Dupont, Christian Dior, Ninna Ricci, Lalique, and Daum.
Total flow of FDI from France to India:
The total flow of FDI from France to India came to around Rs. 28822 crores from August, 1991 to November, 2004. During this time period France stood seventh among all the foreign investors in India.
Major sectors attracting FDI from France to India are:
- Agro- industries
- Power
- Environment
- Drugs and pharmaceuticals
- Auto parts
- Hydrocarbons
- Telecommunications
- Infrastructure
- Information technology
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