France And India Sign $20 Billion in Trade Deals

Emerging markets and particularly India are seen as the key to expansion for many countries and France is no exception.

President Nicolas Sarkozy is the latest in a string of leaders to lead trade delegations there.

He’s signed deals worth 20 billion dollars with India’s Prime Minister Manmohan Singh.

They include aviation, defense, and atomic energy – building two new nuclear reactors.

[Nicholas Sarkozy, French President]:
„With this visit, we shall become nuclear partners. Our collaboration is not limited and looking at our previous relations, France wishes to propose a total partnership in civil nuclear (energy).“

[Manmohan Singh, Indian Prime Minister]:
„President Sarkozy and I have renewed our determination to achieve the trade target of 12 billion euros by the year 2012.“

A French delegation of 50 ministers and senior business officials is spending four days in India.

Finance Minister Christine Lagarde told a business forum in New Delhi that France will invest billions of dollars in India over the next few years and it could be lot more if restrictions on foreign investment were loosened.

[Christine Lagarde, French Finance Minister]:
„Over 10 billion euros is not just a forecast, it’s a commitment by French companies to actually invest in India from 2008 to 2012, and part of it has already been engaged. But there could be a lot more than that, for sure.“

A series of corruption scandals have recently tarnished India’s image and political deadlock is delaying some long-standing reforms.

Lagarde says restrictions in retail and insurance are particularly difficult.

[Christine Lagarde, French Finance Minister]:
„When it is considered sensible by the Indian authorities to actually open up a little bit in those areas, I know that there are French companies, including some in the room, that would be prepared to significantly expand their activities.“

France isn’t the first major world economy to look to India.

Britain and America have both visited in recent months and the leaders of Russia and China are due before the end of the year, highlighting India’s growing global clout.

Foto: NTDTV