About 150 French companies operate in TN, while companies from the state also have a presence in France. Consul general of France in Puducherry and Chennai, Étienne Rolland-Piègue, says French companies have identified Chennai’s potential as an innovation ecosystem. In an interview, he spoke about trade and economic collaboration between TN and France and the upcoming India-EU FTA. Excerpts:How many France-based companies operate in TN?Approximately 150 French companies operate in the state, including listed MNCs, family-owned businesses and entrepreneurs. The first major sector is automotive manufacturing and components, with companies such as Renault, Stellantis (Citroën), Valeo and Michelin. With Saint-Gobain, the construction materials industry is represented. BNP Paribas, the largest bank in Europe, is also present in Chennai. Textiles is another sector of interest for French companies in TN. The unique embroidery talent is why luxury fashion house Chanel has a local presence through the company Vastrakala.How many TN-based companies operate in France and in which sectors?Murugappa Group has an industrial presence in the country, with its industrial chains and bulk fibre materials activities. Several TN-based IT companies operate in France. An example when it comes to innovation is the Chennai-based company Zifo, which collaborates with leading French scientific firms in the health sector, for instance, on their R&D and operations.Are more France-based companies looking to set up facilities in Tamil Nadu?As ties between France and India deepen, French companies are looking at opportunities across the country. Manufacturing is a major focus, and most of the French companies present in TN have a strategy of local production. Their presence shows a blend of manufacturing capacities, global R&D centres and regional headquarters. Reasons attracting them to TN include a skilled workforce, a leading innovation ecosystem with institutions such as IIT Madras and its Research Park, and regional connectivity, in particular with southeast Asia and APAC. Sectors include automotive, industry, project engineering, healthcare and renewable energy. Saint-Gobain and Michelin are reinforcing their manufacturing capacities in the state. French companies have identified Chennai’s potential as an innovation ecosystem, for industrial and deep-tech applications. A recent example is the opening by CMA CGM of an R&D hub in Chennai, developing digital and AI solutions for the shipping activities of the group worldwide.Which industries and sectors in TN would benefit from the India-EU FTA?We anticipate an impact on the automotive industry. Cars are the most visible part of it, but they also come with an entire ecosystem of auto-component suppliers. The FTA has a role to play in developing more diversified and resilient supply chains. The way companies react and adapt will shape a new landscape. Regarding major trends in the automotive industry, electrification is a leading sector for TN. This is a sector where IP is important, paving the way for more joint innovation. This is one of the objectives of the India-France Year of Innovation 2026, and Tamil Nadu was one of the states most represented during Bharat Innovates 2026 in Nice, France, in June. Similarly, energy transition and aerospace are other key sectors.French agri and wine exporters are keen on the India-EU FTA. Could you elaborate?The FTA will have the potential to change the landscape of wine exports to India, with tariff reductions from the current 150% to as low as 20%. This reduction will be applicable only to premium wines, while tariffs on mid-range wines will be reduced to 30%. As per the general rule for the FTA, reduction in tariffs will be gradual, over seven years. The diversity of European wines, including French wines, available in India is expected to increase progressively, depending on consumer response. Commercialisation of alcoholic beverages varies widely between states, from registration to fees and taxes, and distribution. Wine exporters are aware of this market fragmentation. As India might represent a growing market for them through the FTA, they are expected to keep adapting their strategy.
