France Europe news: France woos Indian cos after topping Europe’s most attractive investment ranking

France is courting Indian companies, especially start-ups, for investment after topping an EY survey of the most attractive investment destinations in Europe for the third consecutive year. Emmanuel Lenain, French Ambassador to India, said President Emmanuel Macron leads the most business-friendly regime that has brought in labor reforms, lowered corporate tax and provided a flat capital gains tax ​to facilitate business in the country.

The country is becoming a hub for batteries and electric vehicles, which are also of interest to India.

For Indian companies, France is the third preferred destination in Europe to invest after the United Kingdom and Germany.

He said it had become complex to export from the UK to the EU after Brexit.

“One of France’s great assets is to be able to reach out to Africa, to the Middle East,” he said during a press briefing. “We think it’s now a good place to invest.”

The “France Attractiveness Survey” published by EY on May 31 lists international companies in Europe each year and analyzes the perception of them by foreign economic decision-makers.

According to the latest survey, France is the most attractive country in Europe for the third consecutive year, with 1,222 investment projects identified in 2021, an increase of 24% compared to 2020.

Eric Fajole, Director of Business France India, said the country offers lucrative incentives thanks to its strategic position in Europe.

“France’s attractiveness was hailed for the third consecutive year by international leaders surveyed by EY,” he said.

Business France – the national agency for the promotion and facilitation of international investments in France – has played its full part in this effort to attract investment, he said, adding that 250 million dollars of Indian investments have flowed in in France in 2021.

No less than 210 Indian companies operate in France. From car manufacturer Mahindra & Mahindra to an IT services company

and the agro-enterprise UPL have settled in France. The IT giant announced a new service center in Poitiers last November.

“FDI to France is gaining momentum with the reshuffling of the supply chain industry due to Brexit and the situation in China,” Lenain said. “Indian investors are choosing France as their headquarters in post-Brexit Europe to benefit from the various incentives offered by the French government’s 2030 recovery plan.”

Fajole said there were 1,222 new project decisions in 2021, 69% of which were for extensions, which meant investors thought it was good to invest more in the country.

He said France was becoming a hub for batteries and electric vehicles. Moreover, Indian startups should look to France for its strong R&D and innovation.