Chartered Accountants◆Practising since 2016

France to India · Trade and sectors

Trade agreements and sector rules for French investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

India and the EU concluded negotiations on a free trade agreement on 27 January 2026; it still needs signature and ratification and does not change FDI rules. Foreign investment from France is on the automatic route in most sectors. French investors are most active in aerospace and defence, luxury and retail, agri-food.

What is specific to French companies

French investors concentrate in aerospace, luxury, agri-food and energy. The EU–India agreement is concluded but not yet in force.

Sectors

  • Aerospace and defence
  • Luxury and retail
  • Agri-food
  • Energy and infrastructure

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

Our services

How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and French rules change often; confirm the current position before acting. French law points should be confirmed with a French adviser.

Queries

Send the firm a query

Tell us briefly what you need. A member of the team will get back to you.

We use your details only to respond to your query. See our privacy policy.

Call