India can look to $5 bn French investment in insurance

New Delhi, March 23 (IANS) India can look forward to $5 billion in investment from France in insurance in light of the hike in the ceiling of foreign equity in the sector to 49 percent, French Ambassador Francois Richier said on Monday.

French investment flows into India in 2014 were comparable with those into China, Richier said at an interactive session here between chief executives of French companies in India and government officials organised by the French embassy and the Federation of Indian Chambers of Commerce and Industry (FICCI) ahead of Prime Minister Narendra Modi's visit to France next month.

"When you compare the share of French FDI (foreign direct investment), India receives 6 percent whereas China receives 7 percent as of 2014. This shows that while China has GDP four times greater than India, the French investment is roughly the same. There is far more attraction to India than China due to the large market, wonderful workforce and cultural connection," Richier said.

Amitabh Kant, secretary in the Department of Industrial Policy and Promotion, said there was a new vibrancy and dynamism in India with the government determined to ease the process of doing business.

"For setting up business, we have shortened procedures and cut down on the number of days. Our objective is that over a period of time, we can link up all the state and central governments so that India becomes an easy place to do business," he said.

Modi is scheduled to be in France on April 9-12 and in Germany on April 12-14.

Currently, over 950 French companies are present in India and employ more than 300,000 skilled local staff.

France is also one of the top foreign investors in India, with the latter receiving about $4.4 billion in FDI on this count between April 2000 and November 2014.