NEW DELHI, May 15, 2023 — The EY “Europe Attractiveness Survey” was published on May 11, 2023. This annual publication identifies projects for international establishments in Europe, and analyses the perception that economic decision makers have of each country. It measures real and perceived attractiveness, comparing major European economies.
This year, for the fourth time in a row, France confirmed its first place on the European podium in terms of attractiveness, with 1,259 investment projects recorded in 2022. The United Kingdom placed second with 929 recorded projects, followed by Germany with 832 projects. Despite a difficult and complex international context, France demonstrated that its economy is not only resilient, but has also triumphed over it.
In parallel, the Business France “2022 Annual Report: Foreign investment in France” published yesterday, confirmed these good results, attributing them to the favourable business environment. France is acting on fundamental issues for ensuring the successful establishment of businesses on its territory: ready-to-use industrial land, a pool of recognized talent, and the “France 2030” investment plan, which supports the transformation of the economy.
Reindustrialization, innovation, and France 2030 Plan
France tops Europe in manufacturing with 547 identified projects, reaping the benefits of “France 2030” investment plan. Re-industrialization continues, focusing on decarbonization, semi-conductors, healthcare, and electric vehicles. Innovation was ramped up with 144 R&D projects recorded in 2022, and is recognized globally with 64% of foreign investors considering it more attractive than any other European country.
Indian Investments in France
In 2022, Business France identified 36 new foreign investment projects in France, which included 13 new Indian investments in France, creating and maintaining 257 jobs nationwide. This registers a 21% increase from the previous year. Nearly 80 % of the jobs created or maintained are related to R&D and engineering activities.
France ranks 3rd as host country for Indian investment projects in Europe, behind UK and Germany. Most investments are related to R&D and engineering activities followed by decision making centres and production activities.
“Indian investors not only Choose France as a door to the European market but also to benefit from the trust on its open dynamic and innovative economy. France is a go to destination, for its stable economic and regulatory environment, which is resolutely pro-business and promotes the confidence of Indian investors. Tech and industry giants from India have strengthened their presence in France, benefitting from the rapid deployment of the ‘France 2030’ plan. This illustrates France’s ability to remain a major industrial, innovative, and daring nation that knows how to anticipate current and future transformations,” said Eric Fajole, Director of Business France India.
One such example of a successful Indian company that has invested in France is L&T Technology Services (LTTS). The engineering subsidiary of the L&T group has opened an engineering and R&D centre in Toulouse. It plans to recruit 50 people within a year and around 100 people within 3 years. This centre will serve the group’s customers in the aerospace industry, not only in France but also in Europe. In addition to this L&T has also entered into an Electrolyser Manufacturing Binding Agreement with McPhy Energy a France-based leading electrolyser technology and manufacturing company, for a long-term partnership to explore the opportunities unfolding in the emerging Green Hydrogen market. LTIMindtree, L&T’s IT Services subsidiary also has offices in Paris, Toulouse, and Marseille in France.
“I am delighted that Indian companies increased their investments last year – like TCS with its Pace Port in Paris La Défense, and L&T with its new office in southern France. Companies from India will also mark their strong presence at the upcoming edition of the Choose France Summit on May 15th at the invitation of President Macron. This will include majors like HCL, Tata Sons, Bharti Airtel, Motherson, along with 180+ other CEOs from various global companies,” said Emmanuel Lenain, Ambassador of France to India.
France and India
This year marks the 25th anniversary of the Indo-French strategic partnership. Both France and India are looking forward to setting ambitious goals for strategic, cultural, scientific, academic, and economic cooperation, including in a wide range of industries.
