India signs $100bn free trade deal with four European countrys
India has recently inked a groundbreaking free trade agreement (FTA) with the European Free Trade Association (EFTA), a coalition comprising Norway, Switzerland, Iceland, and Liechtenstein. Notably, these EFTA nations are distinct from the European Union.
According to India's trade minister, this historic agreement is anticipated to attract investments totaling 100 billion US dollar (£77.8 billion) into the country. The pact is a culmination of almost 16 years of negotiations between the involved parties.
Indian Premier Narendra Modi expressed his enthusiasm about the FTA, emphasizing its significance in promoting economic progress and generating opportunities, especially for the youth. He stated, 'This landmark pact underlines our commitment to boosting economic progress and creating opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations.'
Under the terms of the agreement, India has committed to lifting a substantial portion of import tariffs on industrial goods from the four EFTA nations in exchange for investments over a 15-year period. These investments are expected to span various industries, including pharmaceuticals, machinery, and manufacturing.
The FTA announcement coincides with ongoing negotiations between the United Kingdom and India regarding their own free trade agreement, a process that has been underway for the past two years.
Before the agreement takes effect, both India and the four EFTA nations must ratify it. Switzerland has already set a timeline for this, aiming to complete the ratification process by next year.
In recent years, India has been actively engaging in trade agreements with various countries, including notable deals with Australia and the United Arab Emirates over the past two years. These initiatives underscore India's commitment to fostering economic ties and enhancing its global trade relations.
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