2021, a record-breaking year for France’s economic attractiveness
“The 2021 Annual Report: Foreign investment in France” released recently confirms that 2021 was a record-breaking year for France’s economic attractiveness.
New Delhi, 17 March 2022
In 2021, 1,607 new investment projects, a 32% rise from 2020, were identified in France from foreign direct investment, creating or maintaining 45,008 jobs, a 30% increase from 2020. France’s economic attractiveness reached an all-time high in 2021, with an average of 31 investment decisions recorded per week last year.
Investors from 60 different countries chose to invest in France in 2021, with the year being marked by a significant strengthening of France’s economic attractiveness in the eyes of European investors, who accounted for two-thirds of the projects. Germany became the leading investor country in France, ahead of the United States, followed by United Kingdom. 51% of investments in France included the creation of new business sites, a sign of investor confidence in France’s business environment and economic prospects. Expansions, primarily in production/manufacturing facilities, accounting for 44% of the projects and nearly half of the jobs, are illustrative of the renewed confidence evident in the investments from foreign businesses in France.
Major reforms in France
France’s reindustrialization is a reality. A record 460 production/manufacturing projects of foreign origins were identified in France in 2021, an increase of 49% from 2020, with these investments creating or maintaining more than 15,000 jobs in France. These results demonstrate that the process of reindustrialization of the French economy, accelerated in 2021, gained foreign investors’ confidence in France following the COVID-19 health crisis.
H.E. Mr Emmanuel Lenain, Ambassador of France to India, remarked, “France has taken bold measures to create an even more welcoming environment for foreign investors. This has been a priority for the President of the French Republic, H.E. Mr Emmanuel Macron. Structural reforms of the economy as well as massive economic and investment plans have boosted opportunities and ease of doing business for foreign investors. Through permanent contact with investors, Business France and its partners across all of France’s regions have been able to provide direct support to two-thirds of all foreign investment projects.”
Indian investment in France
In 2021, 10 investment projects from India came to fruition in France, creating more than 212 jobs nationwide with two-thirds of them in the IT sector. Meanwhile, Indian investors already active in France were assisted by the Government of France to maintain staff, business, and production in their manufacturing plants in France during the COVID-19 period, just like French companies. France is the third host country for Indian investment projects in Europe with 9% of total Indians going to France. France has attracted more and more Indian companies to move their European headquarters to Paris instead of London due to Brexit. Indian investors choose France as the best entry door to the European market but also to the African market as it offers lucrative incentives with its strategic location in Europe.
“FDI towards France is gaining momentum in light of the post-pandemic global reshaping of supply chains as well as Brexit . Indian investors are choosing France as their HQ in Europe to benefit from the various incentives offered by the French government’s recovery plan. Business France India is happy to assist Indian companies willing to set up or expand in France,” said Mr. Eric Fajole, Director, Business France India.
Indian companies are succeeding in France and one such example is Tata Consultancy Services. TCS, the Indian IT giant and digital transformation leader, has announced the development of a new service centre in Poitiers in November 2021. TCS has an excellent job creation plan with 50 new jobs to be created before 2022, crossing the bar of 100 on-site employees.
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 nationwide attractiveness as an investment location, and also runs the VIE international internship programme.
Business France has 1,500 personnel, in France and 56 countries throughout the world, working with a network of partners with four offices in New Delhi, Mumbai, Bengaluru and Chennai
For further information, please visit: https://investinfrance.fr/