French companies will be making $10 bn investment in India’s infrastructure sector in the next five years. France’ visiting President Francois Hollande’s delegation has revealed that French companies have invested $1 bn per year in India over the last five years.
Hollande is the Chief Guest for this year’s Republic Day Ceremony.
The most important agreement between the two sides will be the Rafale deal that may cost India around Rs 36000 crore.
Agreement between the two on the deal is delayed because of the defence offset content India demanded with the original plan.
“The majority of these investments are meant for the industrial sector, which makes France the major player in Prime Minister Modi’s ‘Make in India’ programme,” French Finance Minister Michel Sapin said.
Sixteen agreements and memoranda of understanding (MoUs) were signed between the two countries on Sunday.
Important of these include the agreement between Airbus Group and India’s growing aerospace firm Mahindra to manufacture helicopters in India and AFD’s (the Agence Francaise de Developpement) project for urban development in three cities including Chandigarh where Mr Hollande was accorded the reception.