India-EFTA Free Trade Agreement: $100 Billion Investment Commitment

• 11 Mar 2024

On 10th March, India and EFTA nations signed a landmark trade deal with a $100 billion investment commitment.

Key Points

• Historic Trade Deal: India and the European Free Trade Association (EFTA) comprising Switzerland, Norway, Iceland, and Liechtenstein signed a free trade agreement.
• Prime Minister's Message: Narendra Modi termed the agreement as a "watershed moment" and vowed to support EFTA countries.
• Investment Commitment: EFTA pledged to invest $100 billion in India over the next 15 years, marking a significant economic boost.
• Commerce Minister's View: Piyush Goyal hailed the agreement as a modern trade pact and emphasized its potential to strengthen economic ties.
• Agreement Details: The pact covers various aspects including trade in goods, services, intellectual property rights, and investment promotion.
• Mutual Benefits: The agreement offers market access and diversification of supply chains, leading to job creation and economic growth.
• Negotiation History: Negotiations began in 2008 and were fast-tracked in 2023, culminating in the signing of the Trade and Economic Partnership Agreement (TEPA).
• EFTA Background: EFTA is an inter-governmental organization promoting free trade, with member states not part of the EU.
• Trade Statistics: India-EFTA trade was $18.65 billion in 2022-23, with Switzerland and Norway being major trading partners.