520
/ 2
Min Read
The landmark Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA) is expected to come into effect by September, according to Commerce and Industry Minister Piyush Goyal. The Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, marks a major step in India’s international trade relations.
Speaking to reporters during an official visit to Switzerland, Goyal confirmed that all four EFTA nations — Iceland, Liechtenstein, Norway, and Switzerland — have completed parliamentary approvals. Switzerland’s ratification is pending until a domestic objection period ends on July 10, after which the agreement can be operationalised.
Under TEPA, India secures a USD 100 billion investment commitment over 15 years in exchange for tariff reductions on high-value imports such as Swiss watches, chocolates, and cut and polished diamonds.
While in Switzerland, Goyal met with executives from over a dozen companies, many of which have expressed interest in investing in India, particularly in sectors like pharmaceuticals, cybersecurity, and machinery manufacturing.
"There's a lot of excitement here about India," Goyal said, encouraging Swiss firms to hold board meetings in India to explore opportunities firsthand. He also highlighted India’s 100% FDI allowance in machine manufacturing, which he said could help reduce dependency on Chinese imports.
Goyal noted that India is actively negotiating trade deals with New Zealand, Chile, Peru, Oman, and the European Union. A deal with the EU, including a Bilateral Investment Treaty (BIT), may be finalised sooner than expected.
Reflecting on 11 years of the NDA government, Goyal said improved governance has made India a top global investment destination, supported by the rise of 2,000 global capability centres and growth in sectors like AC manufacturing through schemes like PLI.
(Source: PTI)
