Economic situation of
France
France is one of the major global economic powers with a highly
diversified market-oriented economy.
It currently has a gross domestic product (GDP) of US$3.4 trillion,
which works out to US$50,541 per capital after adjusting for
purchasing power parity.
The Gini Coefficient in France is 32.4, revealing moderate levels of
inequality. Service sector output accounts for around 79% of GDP,
and tourism is also strong, with France remaining the most visited
country in the world as of 2020.
However, the COVID-19 pandemic impacted the French economy in
2020, with output down by 8.3%.
Overall recovery has been slow and uneven, and the poorest sections
of society have been affected the worst.
However, unemployment has been fairly stable over the past couple
of years, and currently stands at 8.1%.
France has a mixed market economy, characterised by sizeable government
involvement, and economic diversity. For roughly two centuries, the French
economy has consistently ranked among the ten largest globally; it is currently
the world's ninth-largest by purchasing power parity, the seventh-
largest by nominal GDP, and the second-largest in the European Union by both
metrics.[174]
France is considered an economic power, with membership in the Group of
Seven leading industrialised countries, the Organisation for Economic Co-
operation and Development (OECD), and the Group of Twenty largest
economies.
France's economy is highly diversified
services represent two-thirds of both the workforce and GDP, [175] while
the industrial sector accounts for a fifth of GDP and a similar proportion of
employment. France is the third-biggest manufacturing country in Europe,
behind Germany and Italy, and ranks eighth in the world by share of global
manufacturing output, at 1.9 per cent. [176] Less than 2 per cent of GDP is
generated by the primary sector, namely agriculture; [177] however, France's
agricultural sector is among the largest in value and leads the EU in terms of
overall production.
In 2018, France was the fifth-largest trading nation in the world and
the second-largest in Europe, with the value of exports representing
over a fifth of GDP
Its membership in the eurozone and the broader European single
market facilitates access to capital, goods, services, and skilled
labour.
Despite protectionist policies over certain industries, particularly in
agriculture, France has generally played a leading role in fostering
free trade and commercial integration in Europe to enhance its
economy
In 2019, it ranked first in Europe and 13th in the world in foreign
direct investment, with European countries and the United States
being leading sources.According to the Bank of France (equivalent
to RBI) , the leading recipients of FDI were manufacturing, real
estate, finance and insurance.
The Paris Region has the highest concentration of
multinational firms in Europe.
The Paris stock exchange (French: La Bourse de Paris) is
one of the oldest in the world, created by Louis XV in
1724.
Historically been one of the world's major agricultural
centres and remains a "global agricultural powerhouse",
France is the world's sixth-biggest exporter of agricultural
products, generating a trade surplus of over €7.4 billion.
The country's diverse climate, extensive arable land,
modern farming technology, and EU subsidies have made
it Europe's leading agricultural producer and exporter.
Economic relations
between India and France
Franco-Indian trade, which had been growing steadily, slowed
considerably in 2020 in the context of the COVID-19 crisis (€9 billion
as against €11.5 billion in 2019). France ranks 24th among countries
supplying India, with a 1% market share, and is its 17th-largest
customer.
The aviation, chemical and pharmaceutical industries, along with
communications equipment, represent a significant portion of French
exports. France is among India’s leading foreign investors, with
foreign direct investment stock of €9.8 billion at the end of 2020 (6th-
largest G20 investor). Today, more than 540 subsidiaries of French
companies are present there, covering a wide range of sectors and
employing approximately 300,000 people.
France is cooperating with India as part of its “Smart Cities”
programme. French companies in the sustainable urban development
sector are already working in more than 20 cities (metro, water supply,
etc.).
