Hyderabad: Eurozone crisis has hit the India-France bilateral trade and it would be difficult to achieve the USD 12 billion target (of the trade) this year, French Ambassador to India, Franois Richier, has said.
The French government is trying to bring some budgetary reforms to bring down budget deficits so that the growth can be brought back, the Ambassador said.
"It is true that last year it (bilateral trade) was not as high as we expected. Europe is undergoing deep economic crisis. We are trying to get out of it (crisis) through economic measures and coordinated European measures which will boost the trade with the rest of the world including India," the envoy said recently, on the sidelines of an event here.
According to a report from the French Embassy, the bilateral trade between France and India slowed down in 2011 (5.8 percent at 7.46 billion euro).
French exports rose to 2.77 billion euro, a drop of 4.5 percent as compared to 2010, and French imports declined 12.9 percent to 4.69 billion euro.
The French bilateral deficit is growing and stands at 1.92 billion euro. The fall in French exports is mainly due to the postponement of aircraft delivery. Imports from India have been steadily increasing over the past decade, the report added.
"In 2011, French exports to India fell by 4.5 percent to stand at 2.77 billion euro. This is due to the slowdown in India's civil aircraft imports: many private airline companies were established in 2003 and their first phase of acquisition is now coming to an end. Despite low aircraft sales, France's market share in this sector remains constant in India (30-35 percent every year)," the report said.
First Published: Wednesday, July 18, 2012, 10:57