Sun, 19 May 2024
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European Free Trade Association commits $100 billion investment in India

11 March, 2024 21:02

The European Free Trade Association (EFTA) and India signed a trade and economic partnership agreement (TEPA) has committed $100 billion in investments in India and the tariffs between both blocs are expected to reduce.

India’s agreement with four European states Iceland, Liechtenstein, Norway, and Switzerland will help India to reduce its huge trade deficit with EFTA.

Under the mega trade pact, the four European countries are looking at making an investment of USD 100 billion in India over the next 15 years.

The pact will ease tariffs and duties Swiss watches, pharmaceutical products, fertilizers, chocolates, minerals, textiles, smartphones, iron and steel products, etc.

India has a chronic trade deficit with the countries in EFTA. In 2022-23, trade between India and EFTA was $18.65 billion and the trade deficit for India was $14.8 billion. Moreover, the total trade between the two blocs in the last fiscal declined considerably from $27.23 billion in FY21-22.

“The India-EFTA Trade and Economic Partnership Agreement (TEPA) marks a historic milestone in our growing partnership,” said India’s Trade Minister Piyush Goyal Goyal.

The agreement “will pave the path for mutual growth and prosperity” by boosting exports, promoting investment and creating employment, he added.

EFTA was established in 1960 and became the 10th largest trader in the world in terms of merchandise, and the 8th largest in services.

India has already signed trade agreements with Australia and the United Arab Emirates. The deal was signed after several rounds of negotiations spanning 16 years.

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