India-EFTA free trade deal comes into force; to strengthen ‘Make in India’: Goyal
This is perhaps the first free trade agreement (FTA) which has an investment commitment “to balance and make the two sides equitable”, Goyal said
The free trade deal between India and the European Free Trade Association (EFTA) –– a bloc of four nations –– has come into force, Union commerce minister Piyush Goyal said on Wednesday, adding that the FTA will further strengthen ‘Make In India’ by bringing with it investments of $100 billion and creating one million direct jobs.
This is perhaps the first free trade agreement (FTA) which has an investment commitment “to balance and make the two sides equitable”, he said at the India-EFTA Prosperity Summit in New Delhi where officials and business persons of India and EFTA countries –– Norway, Switzerland Iceland and Liechtenstein –– were present.
His comments referred to the EFTA’s investment commitment to make the trade deal equitable and a win-win for both sides. While India offered them access to its vast and growing market, relatively smaller in population and market-size, the four developed European nations reciprocated by offering a $100 billion investment commitment in India over 15 years.
Goyal said the FTA will also boost India’s services exports in IT, education and the audio visual sectors, and create new opportunities for Indian youth. India and the EFTA bloc signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024, and after legal ratifications by respective countries, it came into force from October 1.
“TEPA will further strengthen our exports across machinery, textiles, marine products, coffee, etc., with wider access to the premium European markets. Mutual Recognition Agreements [MRAs] in nursing, accountancy, and architecture will further empower Indian professionals by enabling easier mobility for them,” Goyal said in a post on X.
The minister underscored the importance of the FTA as an instrument of trust and certainty in the current turbulent geopolitical situation that is riddled by wars and tariff uncertainties. It’s about sending a message to the world that “these are two trusted geographies, who are going to provide a stable and predictable environment, which will help businesses plan their future more efficiently, [and] which will mitigate costs that uncertainties often bring in”, he said at the Prosperity Summit.
Goyal also said that the EFTA countries may raise the quantum of investments by another $150 billion after India finalises data exclusivity in intellectual property (IP) laws, which is a work in progress.
The EFTA was represented by Helene Budliger Artieda, Swiss state secretary for economic affairs; Ragnar Kristjánsson, director general, ministry of foreign affairs of Iceland; Christine Lingg, deputy director of the office for foreign affairs of Liechtenstein; and May-Elin Stener, ambassador of Norway to India. A special video greeting was also conveyed by Cecilie Myrseth, minister of Norway.
Together, India and the EFTA nations represent a combined GDP of about $5.4 trillion, providing the scale for deeper integration. Besides an FTA with the bloc, India has strengthened its position in Europe by signing another bilateral deal with the United Kingdom –– the India-UK Comprehensive Economic and Trade Agreement (CETA) –– in July this year. The country is also in an advanced stage to finalise another FTA with the European Union, a bloc of 27 European countries.
