Indo-French bi-lateral trade is set to increase from the present $9 billion to $12 billion by 2012.

“The growth in trade will be primarily driven by sectors such as nuclear energy, logistics, food, chemicals and IT,” Mr Guillaume Page, Inward Investment Officer from Invest in France Agency, said at a seminar on ‘Investment Opportunities in France' here on Friday.

He said in 2005, about 50,000 French employees were working in India, but today it has swelled to 200,000. “This will further increase, especially after the Free Trade Agreement between India and the European Union, which is in the final stages of negotiations,” he said.

Mr Page said last year two key tax measures were adopted by the French Government. “First is abolition of local business tax on productive investments, which can enable companies in France save a total of €7.3 billion in local business tax. And second is funding has been retained for France's flagship research tax credit,” he pointed out.

Also, under the new business development loan scheme, investors in the manufacturing sector could apply to a €200-million fund for an unsecured interest-free Government loan—this is open to all SMEs and medium-sized companies, which have less than 5,000 employees, minimum investment of €5 million and create at least 25 jobs over a guaranteed three-year period.

“Companies now have more freedom to negotiate working hours. Overtime hours, previously fixed at 220 hours per year, can now be determined by company agreement within the limits of European Union regulations (48 hours per week),” Mr Page said.

According to UNCTAD, France was the third leading recipient of FDI in the world in 2009, receiving $59.6 billion of FDI inflows, after the US and China with $129.9 billion and $95 billion respectively.

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