NEW DELHI, Dec 12 - India and France have struck a deal to revise their 1992 treaty which will halve the tax on dividends paid by Indian units to French parents, potentially saving millions for companies with major operations in the South Asian nation, documents show.

In return, India will get to widen its powers to tax share sales by French investors, and revoke the "most favoured nation" status of France that gave it certain tax advantages, according ‍to confidential Indian ​government documents reviewed by Reuters.