France is the most attractive country for investments in Europe, according to the Europe Attractiveness Survey published by EY. This is the third year that France has topped this list.
As markets open up, the French republic is now eying more investments from Indian companies.
In 2021, 10 investment projects from India came to fruition in France, creating more than 200 jobs nationwide. Out of these, two-thirds are from the IT sector. France is India’s third most preferred destination for investment projects in Europe. France is attracting more Indian companies, relocating their European HQ to Paris instead of London due to Brexit. Further, given its strategic location in Europe, Indian investors choose France as the best gateway to not only the European market but also to those in Africa.
Emmanuel Lenain, Ambassador of France to India, observed, “France is now firmly established as the most economically attractive country in Europe. The EY Attractiveness Survey 2022 recognises the impact of the structural reforms introduced by the government during the last five years and the ease of doing business for foreign investors. Moreover, the reshaping of global supply chains post-pandemic and the consequences of Brexit are driving more investments to France. We see Indian investors are choosing France as their HQ in Europe post-Brexit to benefit from the various incentives offered by the French government’s recovery and investment plan 2030.”
One in five investment projects in Europe now takes place in France.
“Over 1,222 foreign investment projects identified in 2021, an increase of 24 per cent compared to 2020. By comparison, projects grew by 2 per cent in the United Kingdom. France also showed greater resilience than the rest of Europe and a record level of investment projects, which confirms that it is a safe destination for foreign investors,” the report said.
The “Europe Attractiveness Survey” analyses both the reality of FDI and the perception that foreign economic decision makers have of the target countries.
According to survey, businesses remain optimistic that Europe will retain its status as an attractive longterm destination for foreign investment. Many factors could undermine the continent’s long-term attractiveness, not least the war in Ukraine.
The survey data reveals that the factors that influence Europe’s attractiveness are the five key areas that include redoubling digital investments, promoting tax flexibility and pragmatism, securing Europe’s competitive edge in sustainability, refreshing support for SMEs and creating the skills needed to transform European business.
“France’s economic attractiveness has been blessed for the third year in a row by the international leaders interviewed by EY. Business France has played its full part in this effort to attract investment with Team France Invest, supporting more than 6,900 projects in France and its overseas territories since 2017, thereby creating more than 185,000 jobs. In all, for 2021, Business France will have been at the origin of 59 per cent of international investment projects and our team in four cities of India will be assist Indian companies set up offices or expand in France,” says Eric Fajole, Director of Business France India.