India has finalized a free trade agreement (FTA) with the European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland, and Liechtenstein.
The agreement is projected to bring investments worth $100 billion into India, according to the country’s trade minister.
Prime Minister Narendra Modi hailed the pact as a significant milestone, emphasizing its role in advancing economic progress and generating opportunities for the youth.
He expressed optimism about the future, highlighting the potential for enhanced prosperity and mutual growth through strengthened ties with EFTA nations.
After nearly 16 years of negotiations, the FTA entails India lifting most import tariffs on industrial goods from the four EFTA countries in exchange for investments over a 15-year period.
These investments are anticipated to span various sectors, including pharmaceuticals, machinery, and manufacturing.
The agreement is expected to facilitate market access and streamline customs procedures, making it easier for businesses in both India and EFTA nations to expand their operations, as stated by the EFTA.
Ratification of the agreement by India and the four EFTA members is necessary before it can be implemented, with Switzerland aiming to complete the process by next year.
India is gearing up for general elections this year, with Prime Minister Modi seeking a historic third term in office.
Over the past two years, India has also sealed trade deals with Australia and the United Arab Emirates.
While the UK has been in negotiations with India for an FTA for the past two years, UK’s trade minister Kemi Badenoch acknowledged the possibility of signing a free trade deal before India’s elections but highlighted the challenges involved, indicating that setting an election deadline might not be feasible.
Source-BBC
