India Signs Landmark Free Trade Agreement with European Free Trade Association
In a significant development, India has inked a free trade agreement with the European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland, and Liechtenstein. The agreement was signed on Sunday in New Delhi, with Union Commerce and Industry Minister Piyush Goyal present at the ceremony.
Prime Minister Narendra Modi hailed the agreement as a “new turn” and a “watershed moment” for India and the EFTA nations. He emphasized the shared commitment to open, free, and equitable trade, highlighting the potential for growth and employment generation, particularly for the youth.
Key Highlights of the Agreement:
- The deal is expected to attract investments worth $100 billion over a span of 15 years, with a focus on generating 1 million direct employments in India.
- It encompasses 14 chapters covering various aspects such as trade in goods, rules of origin, trade in services, investment promotion, intellectual property rights (IPRs), and more.
- The agreement aims to strengthen trade ties between India and EFTA nations, facilitating smoother trade flows and enhancing bilateral cooperation.
Trade Dynamics between India and EFTA:
- India’s exports to EFTA nations totaled $1.92 billion in 2022-2023, while imports stood at $16.74 billion during the same period, resulting in a trade deficit of $14.8 billion.
- Switzerland emerges as India’s largest trading partner within the EFTA bloc, with significant trade in sectors like pharmaceuticals, machinery, and gems and jewellery.
- India has attracted substantial foreign direct investment (FDI) from Switzerland, amounting to about $10 billion between April 2000 and December 2023, further underscoring the robust economic ties between the two countries.
The signing of the free trade agreement marks a significant milestone in India’s economic diplomacy, opening up new avenues for trade and investment opportunities. As both sides work towards implementation, the agreement holds the promise of fostering mutual prosperity and strengthening bilateral relations in the years to come.