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Lotte, Peugeot Propose to Invest as Much as $6 Billion in India

  • Peugeot said to plan 1 billion-euro factory in south India
  • New foreign investment key to Modi’s Make-in-India plan
Auto rickshaw drivers wait for customers at Russell Market in Bengaluru, India, on Friday, Oct. 20, 2017. India's monetary policy-makers disagreed sharply, according to minutes of the Oct. 3-4 meeting, over whether the economy needed another dose of stimulus, underlining their dilemma as growth slowed with inflation forecast to accelerate.
Photographer: Lakshmi Samyukta/Bloomberg
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South Korean conglomerate Lotte Group and French carmaker PSA Group have separately discussed proposals to invest as much as $6 billion combined in India, a move that would boost Prime Minister Narendra Modi’s attempts to attract foreign capital in Asia’s third-largest economy, a person with direct knowledge of the matter said.

Lotte may invest between $3 billion and $5 billion in the next five years, the person said asking not to be identified as the proposals are preliminary. The South Korean firm intends to invest in retail, chemicals, food processing and real estate, as well as develop railway platforms in the country, the person said. Separately, PSA, the maker of Peugeot and Citroen cars, plans to spend about 1 billion euros ($1.2 billion) to build a car factory and an engine plant in southern India, the person said.