Free Trade Agreement
India and the European Free Trade Association (EFTA), a four-member trade bloc including Norway and Switzerland, formalized a historic $100-billion free trade agreement on Sunday. The deal aims to bolster investment and exports between the two entities, with EFTA committing to invest $100 billion in India over the next 15 years.
India’s Trade Minister, Piyush Goyal, hailed the India-EFTA Trade and Economic Partnership Agreement (TEPA) as a “historic milestone” that signifies the growing partnership between the two.
Goyal emphasized that the agreement is poised to foster mutual growth, prosperity, and economic development by enhancing exports, encouraging investments, and generating employment opportunities.
The signing of this significant deal comes after arduous negotiations spanning 16 years, marking a substantial achievement in economic diplomacy. Prime Minister Narendra Modi underscored the shared commitment to “open, fair, and equitable trade” during the signing ceremony, highlighting the symbolic importance of the trade agreement.
Swiss Economy Minister Guy Parmelin expressed optimism about the deal, stating that it would enable EFTA countries to tap into India’s significant growth market, while India stands to attract more foreign investment from EFTA nations.
Parmelin emphasized the potential for job creation and economic growth as a result of increased market access and collaboration.
EFTA, established in 1960, is dedicated to promoting free trade and economic integration among its member nations. In 2021, it ranked as the 10th largest trader globally in merchandise and the eighth largest in services.
India’s pursuit of trade agreements has seen recent successes with countries like Australia and the United Arab Emirates. Additionally, a long-anticipated trade deal with Britain is reported to be in its final stages.
The India-EFTA agreement marks a significant stride towards global economic integration, fostering stronger ties and creating opportunities for sustained economic development and collaboration.
