Historic India-EFTA Trade Deal
India EFTA trade deal. In a significant boost to India’s global trade credentials New Delhi has signed a deal with a European free trade Association. That’s a Four Nation Block comprising Iceland, Liechtenstein, Norway and Switzerland. Which will soon open an office in India.
The free trade deal is a culmination of over 15 years of negotiations between India and the ETFA. Prime Minister Naranda Modi has called the deal a Watershed moment in the bilateral ties between India and the four nations. He said, one of the most pioneering free trade agreements ever concluded between our countries.
It emphasizes our steadfast commitment to Shared Prosperity. Union Minister Peush Goyal echoed Prime Minister Narendra Modi’s stun. Claimed that the Free Trade Agreement will generate more employee. Aid their growth Trade Agreement symbolizes our shared commitment to open Fair Equitable trade as well as generating growth.
Impact Of Trade Deal On Indian Economy
Employment for the Youth the deal is expected to bring Investments worth over hundred billion US dollar in the next 15 years. The trade deal comes at a time when the world is trying to diversify its supply chain and reduce its dependence on China.
The free trade deal with the four Nation block is a part of India’s efforts to replace China as a supply chain hub. The 100 Billion US dollar investment expected out of this deal could boost employment opportunities for Indians.
The deal is also expected to help India’s Services sector. which contributes over 50% to the gross domestic product. There are a number of other sectors too that could benefit from the deal.
India could see Investments flow into the Pharma, Chemical sectors, Food processing and Engineering sectors. The four Nation block is also looking at joint ventures in these sectors. The free trade deal will help diversify Imports away from China.
Which runs a massive trade surplus with India ultimately. It is likely to play a big role in India’s quest to become the third largest economy by 2027.
Details Of The India EFTA Trade Deal
India and the EFTA countries have signed a trade pack. The trade and economic partnership agreement now. The EFTA countries are the four countries Iceland, Liechtenstein, Norway and Switzerland.
This is the first such pack between India and Western countries since 2014. Now one of the key announcements under the pack includes investment worth $100 billion from these four countries to India over a period period of 15 years here is the details of the agreement.
The investment commitments will be fulfilled by private entities and also Sovereign wealth funds as well. The second of course the focus remains on the sectors that will benefit. Which includes sectors like Pharma and Machinery, Agriculture sector is kept out from this pack but all in all we know that India is trying to get more and more trade agreements done.
India already has agreements with Mauritius, UAE , Australia which have been recently concluded and talks are underway for free trade pact with EU bloc. The UK is also part of increased efforts to diversify supply chain agreements with New Delhi well.
The Norwegian Minister for trade and Industry Yan Christian Vesta and Liechtenstein Minister of Foreign Affairs education and Sport Dominic Hustler spoke that ‘This is the day for the history books’. It’s really a breakthrough.
It will create more trade, more Investments, more jobs, very beneficial for both India and for the EU countries including Norway. So I’m very happy today and extremely optimistic about the future.
The key Focus has been the investment announcement $100 billion in 15 years. These are commitments. We are committed to promote business opportunities to mobilise private Investments by creating the ecosystem.
Prosperity And Mutual Growth
