French firms to invest $10 billion in India

French companies will invest $10 billion in India over the next five years, chiefly in the industrial sector, Finance Minister Michel Sapin said on Monday during a visit by President Francois Hollande to India.

"Over the last five years, French companies have invested more than $1 billion per year in India," Sapin said in a speech to the Federation of Indian Chambers of Commerce and Industry in New Delhi.

"We estimate that they will continue to invest at least $10 billion over the next five years."

Hollande, invited as guest of honour for India's Republic Day celebrations, hopes to seal an intergovernmental deal that would pave the way for the sale of 36 Rafale combat jets made by Dassault Aviation.

As part of that deal, there would be significant "offsets", or related French investments that Prime Minister Narendra Modi hopes will support his "Make in India" initiative to develop the manufacturing sector.

"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," Sapin said.

(Image: PIB)