GENERAL INFORMATION:

France is one of the biggest trading partners of India in the EU. The trade between the two countries has been growing steadily and France today is the 7th biggest market of Indian products. Major items of Indian exports to France are textile and garments which account for 38% of India's total trade to that country. The share of leather and leather manufactures in the composition stands at 14%. France has a total area of 5,49,100 sq.kms, with a population of 56.56 million inhabitants as per the 1991 census. The population density is 104.1 per sq.km. The climate varies in France, from generally temperate in the north, to Mediterranean in the south. The weather is wetter in coastal districts, particularly Brittany, and winters are cold in the northeast due to continental influences. The weather is wetter in coastal districts, particularly Brittany, and winters are cold in the northeast due to continental influences. Daily the minimum and maximum temperatures in the capital, Paris, are recorded the highest during July, (13 degree Celsius and 24 degree Celsius) and lowest in January, (O degree Celsius and 5 degree Celsius). The mean annual rainfall in Paris is 585 mm. with most rain falling in August. The national currency of France is Franc (Fr). Important cities are Marseilles, Lyon, Toulouse, Bordeaux, Nice, Lille, Strasbourg, Roulon and Le Havre. The major religion is Roman Catholicism.

ECONOMY:

France is West Europe's leading agricultural country with more than three quarters of its area under cultivation and about one - fifth of its active population engaged in agricultural pursuit. Wheat and Barley are the most important cereal crops. Oats, maize, rye, fruits and vegetables, butter and cheese are also abundantly produced. French Wines, an important export item, are famous the world over. Large quantities of coal and iron ore are mined. The principal French industries are steel, motor vehicles, aircraft's, mechanical and electrical engineering, textiles and chemicals. Besides there are a large number of agro-based industries like sugar, edible oils, perfumes, turpentine, beer, tobacco, paper and paper pulp. Oil refining industry of France is also important. The quantities of crude oil refined are increasing at the rate of 10% per annum. A wide variety of other services such as fashion, catering and tourism play an important part in the French economy.

IMPORTING ENVIRONMENT:

Ordinarily, no import license is necessary except for a limited number of products (mainly agricultural commodities and few- state-traded items). Imports from non-EC countries of most products covered by the EC's common agricultural policy are subject to variable import levels. Common EC regulations are also applied to imports of beef, veal, dairy products, olive oil, most or her oils and fats, sugar and certain specific fruits and vegetables. Imports of pearls and imitation jewellery are prohibited. Ad Valorem import duties are normally levied on CIF value at rates which vary according to country of origin. There are also other charges to compensate for the corresponding duties and taxes on local products. France trades mainly with its 11EC partners (60% of the total). France's five principal clients are Germany and Italy, which have always held first and second position - together with Belgium, the United Kingdom and the USA. Trade with these five countries, make hail of France's external exchanges. France's trade balance with most of the large industrial countries shows a deficit : 40.2 billion francs in 1990 with Germany, 33.6 with USA, 28.9 with Japan, 14.0 with Belgium, 6.9 with Italy.

On the other hand, it showed a surplus of 16.6 with Switzerland, of 15.2 billion with the United Kingdom, and 12.9 with Spain. As regards Distribution is concerned, there are a million shops in France, from the tiny corner shop to the giant supermarket, and 40% of them are connected with the food industry. During the last twenty five years, France has experienced major changes in that sector, the main one being the growth of self-service stores and supermarkets. There are 6,600 supermarkets (with an area below 2,500 square meter) and 860 superstores (with an area exceeding 2500 square meter).

The country which, in the 19th century, saw the birth of the big departmental stores to city centres has now witnessed the settlement of hypermarkets and of vast shopping centres built on the outskirts of big cities. There are 400 of them today. This has led to the emergence of vast distribution networks: side by side with the venerable pioneers such as the Galleries Lafayette, Monoprix, Prisunic, BHV, Nouvelles Galleries etc., or the big chain stores (Casino), new ones have appeared : Carrefour and Auchan (hypermarkets), FNAC (books, records, electronics), Conforama (furniture), Darty (domestic electrical appliances), etc.

The French enjoy one of the highest standards of living in the world, comparable to that of their neighbours in major industrial countries such as Germany, the Netherlands, the United Kingdom or Scandinavia. It has risen most markedly in the course of the last few decades due to the steady and sustained growth of France's economy since fifties. The upward trend is continuing despite some economic difficulties. (Business people should wear conservative clothes. Prior appointments are expected and the use of calling cards are usual, While a knowledge of French is a distinct advantage in business dealings, it is considered impolite to start a conversation in French and then have to revert to English. Business meetings tend to be formal and business decisions are only taken after lengthy discussion with many facts and figures to back up sales presentation. Business entertaining is usually in restaurants. An exporter should avoid mid-July to mid-September for business visits. The official hours are generally 9 a.m. to 12 noon and 2 p.m. to 6 p.m. (Monday to Friday).

The following organisations can offer advice on commercial information:

1) Chamber de Commerce Industries de Paris,
27 avenue de Friedland, 75382 Paris, Cedex 08
Tel :(1) 42897000
Fax:(I) 42897868
Tlx :650100
(2) Franco – British Chamber of Commerce, IO Rue de Long Champs, 75016 Paris
Tel : (I) 44 05 32 99
Fax: (1) 44 05 32 99