France strengthens its economic attractiveness in an unstable global environment, says Business France report
NEW DELHI, March 1, 2024 /PRNewswire/ -- Business France today revealed the 2023 Annual Report on job-creating foreign investment in France. In 2023, 1,815 foreign investment decisions were identified. These projects will enable 59,254 jobs to be created or maintained over three years. On average, 35 investment decisions were recorded per week last year in France.
These figures reflect the confidence that foreign investors have in France in an unstable global economic environment. They are the result of a vast programme of structural reforms implemented in 2017 by President Emmanuel Macron and his government, aimed at transforming the economy and business activity, and making the country more competitive. Furthermore, for the fourth consecutive year, France remains the leading country in Europe for foreign investments.
The 2023 projects came from 56 different countries, out of which the vast majority were from European investors (65% of projects and 56% of jobs). The United States remained the topmost investor in France, with 305 projects (17,000 jobs), ahead of Germany (2nd), with 272 projects (6,815 jobs). The United Kingdom stood out as the third leading investor country in France, with 173 projects identified (4,435 jobs).
France has made decarbonization a priority. The 2023 Annual Report featured 205 projects directly related to the decarbonization of France's economy. Decarbonization strengthens the French manufacturing base and guarantees the future of French manufacturing facilities facing competition from their parent companies and their units around the world.
The 'France 2030' plan offers foreign investors the opportunity to contribute to France's new industrial objectives. 559 projects recorded in 2023 concerned priority sectors targeted by 'France 2030'. This accounted for 31% of the total investments.
Since autumn 2023, France has been deploying its 'Make it Iconic' nation-branding campaign, which targets India as a priority country. Investors and talents from around the world are invited to come to and set up in France, a land of innovation.
France is not resting on its laurels; it is firmly committed to new reforms to maintain its position at both the global and European levels. It continues its efforts to modernize and innovate. To promote its economic key strengths, President Emmanuel Macron brings together foreign investors at the Château of Versailles every year for the 'Choose France' business summit, a hallmark event that has become a highlight of the calendar for international business leaders. The 2024 edition on 13th May will place Indian investors in the limelight, as India will be the country of honour.
Indian investment in France
In 2023, Business France identified in India around 40 new Indian investment projects in France and registered 17 new investment decisions, creating more than 309 jobs nationwide, a third of which was in the IT and pharmaceutical and biotech sectors.
The Ambassador of France to India, H.E. Mr Thierry Mathou, remarked: "I am glad to see more and more Indian investors choosing France, especially in sectors of the future that contribute to the France-India strategic partnership. During his State Visit on Republic Day 2024, President Macron met several leading Indian investors and announced that India will be the first-ever country of honour at the Choose France summit on 13th May in Versailles. We are committed to making sure that Indian investors can seize the opportunities of France's dynamic, innovation-oriented economy."
"FDI towards France is gaining momentum with the reshuffling of the supply chain industry due to Brexit and after-covid global situation. Indian investors choosing France should increase as France is offering one of the best entry doors to the European Market but also to the West African market. Our offices in India will assist any Indian companies willing to increase investment in France," said Mr Eric Fajole, Director Business France India.
Last year, Indian companies such as KPIT Technologies, committed to reimagining green mobility, established a subsidiary in Paris to develop and deliver a range of technology solutions to support the next generation strategic mobility objectives of customers based in France. With the recruitment of local employees in France, commercial operations have already developed, and future expansion plans are underway.
As another example, Lupin Limited has acquired the French pharmaceutical company Medisol, based in Lyon. Medisol has built up a niche portfolio of generic injectable medicines in therapeutic areas such as pain management, anti-inflammatory, cardiovascular diseases, and obstetrics, and markets its products in France through pharmacies and hospitals.
About Business France
Business France is the national agency supporting the international development of the French economy, responsible for fostering export growth by French businesses, as well as promoting and facilitating international investment in France.
It promotes France's companies, business image and its economic attractiveness, and also runs the VIE international internship programme.
Business France has nearly 1,500 personnel, both in France and in 55 countries throughout the world, who work with a network of partners.
Since January 2019, as part of the reform of the state support system for exports, Business France has given private-sector partners responsibility for supporting French SMEs and mid-size companies in the following markets: Belgium, Hungary, Morocco, Norway, the Philippines, and Singapore.
For further information, please visit: www.businessfrance.fr / inde@businessfrance
Methodology used in the counting of projects for the 2023 Annual Report:
The Annual Report on Foreign Investment records job-creating investment projects or foreign businesses in France that create value.
The number of jobs created or maintained used in the Annual Report is the number announced for the next three years, this duration corresponding approximately to the time horizon for programming investments by businesses. Only long-term, full-time equivalent jobs are retained.
Since 2023, sectors included in the Report have been expanded. Investments in decarbonization, digitalization, safeguarding and technological partnerships are now recorded by Business France in the Annual Report, even if they do not generate jobs, as they strengthen the French manufacturing base, modernize the sites of foreign investors and form part of the "France 2030" economic attractiveness strategy.
- Safeguarding investments corresponds to projects that improve the production capacities of an ailing site. Three situations are recorded in the Annual Report:
- Investments of at least €100,000 at sites threatened with closure and monitored as such by state services to restart their business (sustainable safeguarding)
- Investments of at least €100,000 that aim to decarbonize an activity (sustainable decarbonization)
- Investments of at least €100,000 aimed at the digitalization of a business (sustainable digitalization)
- R&D partnerships that give rise to the creation of a permanent or temporary legal structure in France for an R&D activity in which the foreign business is a minority investor.
Contact:
Embassy of France in India
2/50E Shantipath, Chanakyapuri
New Delhi 110021, India
[email protected]
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