'EU may get $25 bn FDI from India in 2007'

NEW DELHI: The Foreign Direct Investment (FDI) outflow from India to the European Union (EU) can cross the $25 bn (Rs 1,12,500 crore) mark this year, according to a joint finding by two European investment bodies from France and Germany.

The trade bodies - 'Invest in France' and 'Invest in Germany' expect the FDI inflow in EU from India to rise over 56 per cent from an estimated USD 16 billion in 2006.

"Indian companies are investing in Europe mainly through big acquisitions and with more number of acquisition and investment proposals coming from the Indian companies we expect the investment figure to well cross 25 billion dollars this year," French Ambassador for international investment and President of Invest in France Philippe Favre said.

The 25 billion dollar figure includes over 12 billion dollar worth of Tata-Corus deal, he said.

In France alone, 50 Indian companies are present and the number is expected to cross 70 by the end of the year, Favre said.

"We expect at least 15-20 new companies to open shops in France either through acquisitions or through subsidiaries and one each from pharma and automobile have almost finalised their investment plans for France," he said.