India and EFTA Sign Agreement; Ratification Process Underway.
India and the European Free Trade Association (EFTA) have reached an agreement, with Switzerland aiming to ratify the deal by next year. The agreement includes commitments of $100 billion (€91 billion) in investments and the creation of one million direct jobs in India over the next 15 years.
Under the agreement, India has pledged to reduce import tariffs on industrial products from EFTA member countries, which include Iceland, Liechtenstein, Norway, and Switzerland.
In a press release on Sunday, EFTA stated that the landmark agreement is expected to bring significant economic benefits, including better-integrated and more resilient supply chains, new opportunities for businesses and individuals on both sides, increased trade and investment flows, job creation, and economic growth.
India’s Commerce and Industry Minister, Piyush Goyal, hailed the signing of the agreement with the European Free Trade Association (EFTA) as a significant milestone, marking the first-ever pact with a major economic bloc in Europe.
EFTA, considered the second most influential economic organization on the continent after the European Union, now shares a close association with India. The agreement signals India’s ongoing efforts to forge trade partnerships, including ongoing negotiations with the UK and the EU.
The comprehensive agreement encompasses trade in goods and services, investment promotion, intellectual property, government procurement, trade and sustainable development, and dispute settlement. According to Goyal, it will open doors for Indian exporters to tap into European and global markets.
The agreement was formalized in New Delhi, with Piyush Goyal representing India, accompanied by counterparts Guy Parmelin of Switzerland, Bjarni Benediktsson of Iceland, Dominique Hasler of Liechtenstein, and Jan Christian Vestre of Norway.
Parmelin, speaking on behalf of EFTA member states, highlighted the mutual benefits of the agreement, stating, “EFTA countries gain market access to a major growth market. Our companies strive to diversify their supply chains while rendering them more resilient. India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs.”
The next step involves the ratification of the agreement by India and EFTA member countries, with Switzerland aiming to complete the process by next year.
Spurces: euronews.business