With the Insurance Laws (Amendment) Bill got mandatory Parliamentary nod last month, the Indian insurance market can see $5 billion (about INR 23,000 crore) French investments. The Bill allows raising foreign direct investment (FDI) in insurance sector from 26 per cent to 49 per cent.
In year 2014, India received 6 per cent share of overall French FDI, whereas China received 7 per cent, up by 1 per cent, French ambassador to India, Mr. Francois Richier told this at an interactive session between chief executives of French companies in India and government officials.
The program was organized by the French embassy and the FICCI (Federation of Indian Chambers of Commerce and Industry) ahead of Mr. Narendra Modi’s visit to France this month. Mr. Modi will be touring France from April 09 to April 12.
Despite huge difference between GDPs of two Asian leaders (China has GDP 4-folds more than India); India received almost the equal French investment during the period. This shows more attraction of French investors to India than China due to big market, amazing workforce and cultural connection, Mr. Richier said.
India has received about $4.4 bn French FDI between April 2000 and November 2014.
The Modi-led government is trying to make India a better place for doing business, easing norms and process. For setting up new business in India, the government has taken up certain initiatives such as- shortening procedures and cutting down on the number of days.
As of now, there are above 950 French companies in India are operating their businesses with providing employment to over 3 lac Indian skilled professionals.