India and the european Free Trade Association (EFTA), a four-nation european organization, signed a historic Free Trade Agreement (FTA) on Sunday. This agreement aims to enhance investment and trade in goods and services between india and EFTA member countries—Iceland, Liechtenstein, Norway, and Switzerland. The FTA is expected to attract around $100 billion in investments from EFTA nations to india over 15 years, leading to the creation of approximately one million new jobs.
Commerce and industry Minister piyush goyal emphasized the significance of this agreement, noting that it marks India's first trade pact with a group of developed countries. The FTA, comprising 14 chapters, covers various aspects such as goods trade, rules of origin, intellectual property rights (IPR), services trade, investment promotion and cooperation, government procurement, technical barriers to trade, and trade facilitation.
Goyal highlighted the potential benefits, including increased market access for european goods in india and streamlined access for indian products to EFTA nations. This agreement is expected to facilitate economic cooperation and strengthen ties between the participating nations.
Guy Parmelin, representing EFTA, expressed optimism about the agreement, emphasizing that all four member countries now have access to the significant indian market. He anticipates that EFTA companies will develop products and services tailored to the indian market, leading to increased foreign investment in india and the creation of employment opportunities.
EFTA, distinct from the european union (EU), focuses on promoting free trade among its member countries. The agreement with EFTA is part of India's broader strategy to strengthen economic relations and explore trade opportunities with various regions. In addition to the EFTA agreement, india is concurrently engaged in negotiations for a free trade agreement with the european union, comprising 27 member countries. The successful implementation of these agreements is expected to contribute to the growth of India's international trade and economic partnerships.
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