French firms to invest $10 billion in India: FM Michel Sapin

Michel Sapin said that the investment will be made over the next five years

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

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 multi-billion-dollar sale of 36 Rafale combat jets. 

Sapin was speaking at a joint business session organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and attended by both Indian and French players in the defence, aeronautics, urban development sectors.

Meanwhile, later in the day, Prime Minister Narendra Modi is scheduled to attend the ground breaking ceremony for the new International Solar Alliance Headquarters set to come up in Gurgaon.

On the agenda

Both PM Narendra Modi and Hollande are also likely to discuss upgrading the “special and strategic partnership” signed in 1998. For the past few months, officials have been discussing a closer engagement on counter-terrorism cooperation on the lines of the India-US homeland security dialogue.

The nations are also set to discuss more cooperation on the lines of renewable energy agreement signed last April.