India Sign Agreement with Four Members of European Free Trade Association

Four member states of the European Free Trade Association (EFTA) – Iceland, Norway, Liechtenstein, and Switzerland – have signed a Trade and Economic Partnership Agreement (TEPA) with India on Sunday. These four countries are non-members of the European Union.

The landmark agreement between India and EFTA is set to bring significant economic benefits, such as better integrated and more resilient supply chains, new opportunities for businesses and individuals on both sides leading to increased trade and investment flows, job creation, and economic growth.

Speaking on the occasion on behalf of EFTA, Federal Councillor Guy Parmelin said that EFTA countries gain market access to a major growth market and their companies would strive to diversify their supply chains while rendering them more resilient.

“India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs. […] All in all, the TEPA will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA States,” he added.

The agreement enhances market access and simplifies customs procedures making it easier for Indian and EFTA businesses to expand their operations in the respective markets. The agreement further aims to facilitate and promote investment opportunities between the Parties.

The EFTA-India TEPA was signed by Indian Federal Minister for Commerce and Industry Piyush Goyal, Guy Parmelin, Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research, Bjarni Benediktsson, Minister of Foreign Affairs, Iceland; Dominique Hasler, Minister of Foreign Affairs, Liechtenstein and Jan Christian Vestre, Minister of Trade and Industry, Norway. Piyush Goel said that The deal with EFTA will see investments in India of $100 billion.

Significant Milestone

The agreement marks a significant milestone in the relationships between the EFTA States and India. It reflects the culmination of dedicated efforts to foster a deeper economic partnership, underscoring the importance of dialogue, cooperation, and mutual understanding.

Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement, India’s Prime Minister Narendra Modi said that this landmark pact underlines India’s commitment to boosting economic progress and create opportunities for our youth.

“The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations,” he added.

The agreement between India and these four countries came after almost 16 years of intense negotiations. Under this deal, India will lift most import tariffs on industrial goods from the four countries in return for investments over 15 years, according to BBC news channel.