India signs free trade agreement with some European countries

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India and the European Free Trade Association (EFTA) signed a Trade and Economic Partnership Agreement (TEPA) on Sunday, March 10, 2024. The European Free Trade Association is a trade organization and free trade area consisting of four European states- Iceland, Liechtenstein, Norway and Switzerland.

Lauding the free trade pact signed between India and the four-nation bloc, Prime Minister Narendra Modi called it a “watershed moment” and added that the agreement emphasizes New Delhi’s unwavering commitment to foster shared prosperity and a more inclusive partnership.

“Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our 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,” PM Modi posted on X, formerly Twitter.

He said that the “innovative and well-balanced” trade deal reflects the respective developmental aspirations of both parties and symbolizes their shared commitment to open, fair, equitable trade.

As part of the agreement, EFTA has committed to promoting investments to increase the stock of foreign direct investments by $100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments.
Notably, India has been working on a Trade and Economic Partnership Agreement (TEPA) with EFTA countries comprising Switzerland, Iceland, Norway and Liechtenstein for several years.He said that the culmination of efforts to finalize an innovative and well-balanced trade deal that reflects the respective developmental aspirations is commendable.

“One of the most pioneering free trade agreements ever concluded between our countries, TEPA emphasizes our steadfast commitment to shared prosperity and our drive to cultivate a stronger, more inclusive partnership between India and EFTA, furthering the aspirations of our people,” he said.

Prime Minister Modi highlighted that despite structural diversities in many aspects, the economies of India and EFTA countries possess complementarities that promise to be a “win-win situation” for all nations.

He said that with the opening up of enormous trading and investment opportunities, India and EFTA countries have reached a new level of trust and ambition and the trade agreement symbolizes “our shared commitment to open, fair, equitable trade”, as well as generating growth and employment for the youth.

He emphasized that India’s economy has taken a “quantum leap” in the last 10 years, moving from being the world’s eleventh largest economy to the fifth largest and its next goal is to become the ‘third largest economy in the world’.

“Through wide-ranging reforms, we have enhanced the ease of doing business that has helped our nation touch new heights in business, manufacturing and exports. The global leadership of EFTA countries in innovation and R&D across diverse spheres such as digital trade, banking and financial services, transport and logistics, industrial machinery, bio technology, pharmaceuticals, chemicals, food processing and clean energy, will open up new doors of collaboration,” PM Modi said.

He assured that India will extend all possible support to EFTA countries and facilitate industry and businesses, not only to achieve the committed targets, but also “go beyond them”.

“May this agreement mark the beginning of a new chapter in the journey of our nations toward a more prosperous future for us all,” he added.

Union Commerce Minister Piyush Goyal co-chaired the meeting on the India-EFTA trade agreement in the national capital on Sunday.

He said that “never before in the history of FTAs has such an FTA ever happened” adding that it is very balanced, fair and equitable.

Goyal said  the signing of the Trade and Economic Participation Agreement with the European Free Trade Association marks the culmination of nearly 15 years of hard work, tremendous energy, and effort.

External Affairs Minister S. Jaishankar also hailed the  free trade pact and said that it reflects a new way of furthering international economic collaboration

“A great day for India’s partnership with Iceland, Liechtenstein, Norway and Switzerland. Congratulate my colleague CIM @PiyushGoyal on this achievement. The India-EFTA Trade & Economic Partnership Agreement (TEPA) signed today is a bold achievement. It reflects a new way of furthering international economic collaboration,” he stated.