The deal between India and the EFTA (European Free Trade Association) will see investments in India’s economy of about $100B, according to their trade minister. The EFTA is made up of Norway, Iceland, the microstate of Liechtenstein, and Switzerland. This comes after around 16 years of negotiations with the four EFTA countries.
The trade deal itself states that India must lift many barriers in trade between the four while they invest $100B in India over 15 years. These investments are to be made across many different industries, including machinery, manufacturing, and pharmaceuticals. “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 EFTA stated. However, this deal needs to be ratified by all five countries, with Switzerland planning to do so in 2025.
This comes after the UK and India have already been negotiating an FTA for the past few years. The UK’s trade minister stated that it might be possible to sign one before India’s general elections where Modi seeks a third term in office. These elections are coming in November, though it would be “challenging” to be signed by then. She later added that she does not want to have the election as a deadline. India has also been negotiating trade deals with countries like the UAE and Australia in the past 2 years as well.
