According to officials, India and the four members of the European Free Trade Association (EFTA), which also includes Norway and Switzerland, inked a $100 billion free trade agreement on Sunday to encourage exports and investment.
According to India’s Trade Minister Piyush Goyal, the agreement calls for the European Free Trade Association (EFTA), which is composed of non-EU countries like Iceland and Liechtenstein, to invest $100 billion over a 15-year period in India, the fifth-largest economy in the world.
“The India-EFTA Trade and Economic Partnership Agreement (TEPA) marks a historic milestone in our growing partnership,” Goyal said after the signing in New Delhi.
The agreement “will pave the path for mutual growth and prosperity” by boosting exports, promoting investment and creating employment, he added.
The deal was signed after several rounds of negotiations spanning 16 years.
Indian Prime Minister Narendra Modi said the trade agreement “symbolises our shared commitment to open, fair and equitable trade”, according to a statement read out at the signing ceremony.
Swiss Economy Minister Guy Parmelin said the deal “will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA states”.
“EFTA countries gain market access to a major growth market… India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs”, he added, speaking in New Delhi.
The goal of EFTA’s establishment in 1960 was to advance economic integration and free trade among its members. It ranked eighth in terms of services traded and tenth in terms of merchandise in the globe in 2021.
India has struck trade deals with the United Arab Emirates and Australia in recent years.
There are also rumors that a long-discussed trade agreement with Britain is nearing completion.
