France to invest over Rs 53,000 cr in Indian core sector

NEW DELHI: France has earmarked 11billion euros or in excess of Rs 53,150 crore for Indian infrastructureprojects, senior French government officials said on Friday.Officials, whowere in the Capital along with French minister for trade and commerce FrancoisLoos, told Times News Network that the fund would be spent in infrastructureprojects such as water resources and recycling industrial wastes."Thesefunds are a part of the French government''s planned investments in countries ofEastern Europe and other developing nations. The money would essentially involvesoft loans to specific projects," said Mathilde Lemoine, a prominent member ofthe French delegation.Francois Loos himself said that France was keen totake up infrastructure projects in India in a big way. "France and India mustco-operate in these credit projects. We are interested in developing waterresources in India along with projects dealing with waste management," hesaid.Members of the delegation said many French corporates are currentlyassessing the importance in doing business. "These infrastructure projectsapart, France is also considering big-ticket foreign direct investment in India.Associations with Indian companies will thus go beyond one-time technologytransfer and actually result in equity joint ventures," another senior officialsaid.Loos said French companies, as of date, are "not doing enoughco-operation" with India, but the forthcoming visit of French Prime MinisterJean-Pierre Raffarin "will change that". Joint ventures in biotech research anddevelopment is another area where France and India can work together, hesaid.France, the minister said, is pursuing reforms like never beforeafter the old regime of Left Socialists were replaced by the Republic Party ledby French President Jacques Chirac.Speaking at a seminar organised by theFederation of Indian Chambers of Commerce & Industry, Loos said engineeringis another area where he feels France and India can co-operate in a big way."India is doing well in France. It would only do better in the coming years", headded. India and France have agreed to focus on specific areas likeagro-products, telecom, energy, information technology, transport, lasertechnology for boosting bilateral trade. This apart, the ministries of urbandevelopment and agriculture are exploring opportunities to set up joint ventureswith France. As of date, France is the fifth largest export destinationfor India among European nations. India exports cotton/man-made textiles,finished leather, leather garments and goods, gems and jewelleries, handicrafts,organic/inorganic/agro-chemicals, transport equipment, drugs andpharmaceuticals, castor oil, machinery and instruments, carpets, spices, cashew,marine products, and coffee to France.In financial year 2001-2002, totalIndo-French bilateral trade was in the region of Rs 1,711 crore. Of this, Indianexports amounted to Rs 843.36 crore. In 2000-2001, total trade was Rs 1,641.67crore; India contributed Rs 1,015.22 crore of this.Indian companies haverecently complained of anti-dumping duties imposed on Indian products by theFrench government. This probably explains why Indian exports to France declinedby about 7 per cent last fiscal, while imports from France increased by 23 percent.