India and the European Free Trade Association countries of Switzerland, Norway, Iceland and Liechtenstein have signed an EFTA Trade and Economic Participation Agreement (TEPA) on Sunday with a promise of $100 billion in investments.
The five countries including India have come together to close a deal that was 15 years in the making, marking a 'big opportunity for businesses from pharma, medical devices, food, R&D,' according to Commerce and Industry Minister Piyush Goyal
Speaking at the signing of the trade pact Goyal noted that the deal ensured robust and mature Intellectual Property rights were woven into the trade and investment deal with EFTA nations.
"Demand, Democracy and Diversity will reflect the potential in India and this deal is expected to create 1 million (10 lakh) jobs in the next 15 years," Goyal stated during the signing of the pact adding that India would benefit in terms of investment, innovation and R&D.
We will look upon a very strong and sustaining partnership between you, your businesses, your people, and the people of India. TEPA is centered around sustainable development, inclusive growth, and environmental protection. It is the first time in the history of the world that we are inking a free trade agreement with a binding commitment to invest $100 billion in India from EFTA countries.Minister Piyush Goyal
Ahead of the signing of the pact, trade thinktank Global Trade Research Initiative estimated that 98% of India's exports to Switzerland are industrial goods which are already entering at zero tariffs, hence it won't be a merchandise trade benefit from the FTA.
India's agricultural exports are minimal and unlikely to increase significantly due to strict quality standards and non-tariff barriers, GTRI noted.
Speaking on the trade deal, Goyal also emphasized that the deal has respected the sensitivity of certain sectors in all 5 countries involved and is a modern trade agreement that is fair, equitable and balanced.
Switzerland is India's biggest bilateral trading partner of the 4 countries. India's exports to EFTA countries during 2022-23 stood at $1.92 billion against $1.74 billion in 2021-22.
Imports totalled to $16.74 billion during the last fiscal as compared to $25.5 billion in 2021-22, leaving a trade deficit of $14.8 billion.
Goyal noted that there is significant focus in terms of access to services and significant focus for professionals to engage from both countries and ensure certainity to provide services in areas of IT, healthcare, audio-visual, business and fnancial accounting, among others.
"Services will be one of the pillars of this agreement just like investment in goods," Goyal said at the press conference post the signing.
The briefing highlighted that while agriculture sector was kept out of the deal, the benefits will include high-quality machinery that will aid food processing, dairy and pharma sectors in India
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