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India Will Be Play a Significant Role as the European Union, France Seek to Diversify Supply Chains: French Minister for Foreign Trade

    12 March , 2022         Fdiindia

India Will Be Play a Significant Role as the European Union, France Seek to Diversify Supply Chains: French Minister for Foreign Trade

French Minister for foreign trade and economic attractiveness Franck Riester said that India will be a major player as Europe and France look to diversify their supply chains due to the COVID-19 pandemic and the recent sanctions on Russia.

“The Ukraine crisis has come on top of the Covid-19 crisis and is accelerating the need for Europe and France to rethink our value chains and supply chains. It's a matter of strategic autonomy,” the minister said after meeting with India’s Commerce and Industry Minister Piyush Goyal.

“From semiconductors to energy and other key sectors, we are diversifying and increasing the resilience of our supply chains. India will play a key part in this endeavor. Co-localization of production with India will be a priority,” he added.

The meeting between the two ministers had two agendas – first, pushing for an ambitious India-EU free trade agreement (FTA) and, second, enhancing bilateral investment flows between India and France.

“We are working on a real ambitious agenda for India-EU FTA and France as the current president of the Council of the EU is pushing that target. With respect to bilateral investments, the goal is not only about increasing French investments in India but also inviting more Indian FDI into France,” said Reister.

“Today France has become Europe's leading FDI destination and the government has introduced ambitious pro-business reforms, including lower corporate taxes for investors,” he further added.

French companies are not only looking to exploit the Indian market. Both the countries are keen on third-country exports from India to regions such as the Indo-Pacific and Africa, said the French minister.

More than 1,000 French companies have been established in India till date, with total French investment amounting to $9.86 billion from April 2000 to June 2021. For the same period, 200 Indian businesses have a presence in France.

France is collaborating with India to develop Nagpur, Puducherry, and Chandigarh as smart cities with a proposed investment of more than $2.2 billion. The foreign nation is also contributing technological knowledge in the field of renewable energy to help India attain the target of 450 GW of installed renewable energy capacity by 2030.


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