[AI] france offers opportunities for Indian investments

rambabu adikesavalu rambabu_arb at yahoo.com
Wed Sep 26 12:23:15 EDT 2007


Dear Friends,
The article which I am pasting below may be off topic.
But the interesting fact of this article is its author
Dr. Garimela Subramanyam, who is a visually
challenged. He is the Sub-Editor in The Hindu. As some
of you might be knowing, our friend, L.Subramani is a
correspondant at The Deccan Herald, don't you think
that there is a very good opportunity for us to
venture into the field of journalism?
International - India & World     

      France offers opportunities for Indian
investments 
      Garimella Subramaniam 
            Value of single European market needs more
recognition: investment 
            body 




      Focus on IT, pharmaceuticals and automotive
sectors
      France’s FDI attractiveness attributed to
greater openness



      Paris: Although the world’s largest single
market of 500 million consumers 
      in the European Union should be an obvious
attraction to Indian investors 
      overseas, this reality often went unnoticed
among entrepreneurs, according 
      to Philippe Favre, president, Invest in France
Agency (IFA). 
      Talking to visiting journalists from India, he
said France, the world’s 
      fourth largest recipient of foreign direct
investment, offered ample 
      opportunities for Indian investment in the
Information and Technology, 
      pharmaceuticals and automotive sectors.
      Some 40,000 jobs were created in 2006 by foreign
companies doing business 
      in France and they account for 16 per cent of
the total number of 
      employees in the market sector, according to a
recent IFA report. Mr. 
      Favre ascribed the FDI attractiveness of his
country, a smaller economy 
      than Germany, to a tradition of greater
openness. In addition to its 63 
      million consumers, France boasts the world’s
largest number of tourists of 
      79 million.
      On the IFA’s India focus, he said the Indian
economic and business 
      establishment, on account of training and
exposure, tended towards the 
      United Kingdom’s viewpoint on Europe.
      This to a large extent explained a lack of
familiarity with the realities 
      of a highly integrated European market and
common customs tariffs and 
      anti-trust regulation in the 27 member-states.
He pointed out that this 
      lag was peculiar to India, unlike Japan and
China, where there was a more 
      nuanced appreciation of the advantages of
Europe’s investment climate.
      The expansion of the eurozone — where the common
currency the euro is 
      adopted — to 15 states (Cyprus and Malta are set
to join it from January 
      2008) would be an obvious boost to trade. Mr.
Favre also referred to the 
      Schengen area which enables travel among the
member-countries with a 
      common visa, a highly beneficial system for
non-EU citizens that allows 
      cross-border movement among firms based in
different locations.
      Labour cost 
      Asked whether the high labour cost involved in
setting up businesses in 
      advanced countries was not a deterrent to FDI
flows, Mr. Favre said the 
      sheer size of the market and infrastructure
overrode wage considerations. 
      This was borne out by the fact that the top 10
countries in terms of FDI, 
      with the exception of China, were from the
developed world. 
      Moreover, companies nurturing global ambitions
and international brands 
      could not achieve their goals without a presence
in the EU, he said.
      In a bid to raise Indian FDI inflow into France,
the IFA has identified 
      300 Indian IT and pharmaceutical firms with an
international presence as 
      potential investors and recently opened an
office in New Delhi.

With regards,
A.Rambabu,
Phone: 044-25540134, 044-42813150
 


      ____________________________________________________________________________________
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