India signs free trade deal with four-member EFTA bloc

New Delhi, Mar 10 (Agency) India and the four-member European Free Trade Association (EFTA) bloc on Sunday signed a free trade deal which Union Commerce Minister Piyush Goyal termed as the country’s first modern free trade agreement (FTA) and also being equitable, fair and balanced. As per the Trade and Economic Partnership Agreement (TEPA), the four member EFTA countries comprising Switzerland, Norway, Liechtenstein and Iceland would invest to the tune of US$100 billion in India over the next 15 years. “There is a commitment for foreign direct investment (FDI) flowing from EFTA countries to India of approximately $100 billion in the next 15 years creating a million jobs in India,” Commerce Minister Goyal said while briefing the media after the trade deal was signed. The trade deal has been signed between India and EFTA after 9-10 months of intense negotiation though talks first started almost 16 years back. Goyal said that India-EFTA trade agreement is innovative as well as ambitious and considers sensitivities of all the five countries. “All the five countries stand to benefit. We stand to benefit in terms of investment, innovation and R&D. You (EFTA countries) stand to benefit from the collaboration in terms of your ability to meet 7-8 billion people’s needs across the world.

This agreement will be good for businesses in all the five countries. It has been welcomed by all the business communities on both the sides,” Goyal said. This is the third free trade signed by the Modi government after UAE and Australia. India is currently engaged with several other countries and trade blocs including UK, EU and Canada for free trade agreement. Goyal said that the trade pact with EFTA members is the first agreement in the history of FTAs as it includes commitment on investment promotion and job creation. The Minister also said that the pact with EFTA members focusses on sustainable growth, integrates India with many new global value chains and promises huge business opportunities and employment opportunities to the people of the five countries.