In a significant development, India signed a trade agreement with the European Free Trade Association (EFTA) on Sunday.
The pact, hailed as a landmark achievement, holds the promise of substantial economic benefits for both sides.
EFTA comprises Iceland, Liechtenstein, Norway, and Switzerland.
The agreement hinges on a $100 billion investment commitment from EFTA countries to India over the next 15 years.
This substantial influx of foreign direct investment is expected to create one million new jobs in India.
In return, India has agreed to reduce import duties on industrial goods originating from these European nations.
Expressing optimism about the deal, an EFTA communique highlighted its potential to foster deeper economic integration.
It anticipates a more robust and resilient supply chain network, along with increased trade and investment flows.
The agreement is also expected to generate new business opportunities and contribute to overall economic growth for both India and EFTA member states.
India’s Commerce and Industry Minister, Piyush Goyal, emphasized the historic nature of the agreement.
This marks India’s first trade pact with a major European economic bloc. Negotiations for similar trade deals are currently underway with the United Kingdom and the European Union.
The pact encompasses a broad spectrum of areas including trade in goods and services, intellectual property rights, government procurement practices, sustainable development in trade, and mechanisms for dispute resolution.
Minister Goyal, in a statement, pointed out that the agreement will offer Indian exporters a vital gateway to European and global markets.
The signing ceremony held in New Delhi was attended by officials from both sides.
Representing India was Minister Goyal, while his counterpart from Switzerland, Guy Parmelin, signed on behalf of EFTA member states.
Other dignitaries present included Iceland’s Foreign Minister Bjarni Benediktsson, Liechtenstein’s Foreign Minister Dominique Hasler, and Norway’s Trade and Industry Minister Jan Christian Vestre.
Parmelin, speaking for EFTA nations, expressed their enthusiasm about gaining access to India’s burgeoning market.
He emphasized the deal’s importance in diversifying and strengthening EFTA supply chains.
He further highlighted the agreement’s potential to create high-quality employment opportunities in India through increased foreign investment.
