India signs $100B trade deal with EFTA countries
India has inked a Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), which includes Norway, Iceland, Liechtenstein, and Switzerland. Commerce Minister Piyush Goyal announced that EFTA countries have pledged to invest $100 billion in India over the next 15 years. During a press conference in New Delhi, Goyal stated, "The investment promise from EFTA countries is a big opportunity for pharma, medical devices, and food sectors. And a win, win for all the nations involved."
TEPA negotiations and trade relations
Talks for a comprehensive trade and investment agreement between EFTA states and India started in January 2008 but were halted in 2013 after 13 rounds of discussions. They resumed in October 2016, and following approximately 21 rounds of negotiations, the trade pact was signed. The agreement encompasses 14 chapters covering goods, services, rules of origin, investment promotion, and intellectual property rights. In 2022-23, total trade between India and EFTA nations amounted to around $18.66 billion.
PM Modi's message as India signs TEPA
Trade deficit with Switzerland and Norway
India experiences a trade deficit with Switzerland and Norway as imports from these countries surpass exports. In the last fiscal year, India's imports from Switzerland decreased 32.5% on-year to $15.79 billion, while exports declined by 0.15% to $1.35 billion. Imports from Norway at $938.06 million fell 55.17% in 2022-23 on a year-on-year basis, and exports surged 49.9% to $569.19 million.
Key exports and imports
India's primary exports to EFTA countries include organic/inorganic chemicals, drugs and pharmaceuticals, gems and jewelry, while imports from the Nordic states consist of gold, pharmaceuticals, watches, ships, and boats.
India is also discussing free trade agreements with other nations
The latest development marks a victory for the Indian government, which aimed to finalize a trade agreement before the upcoming Lok Sabha elections. It's worth noting that EFTA countries are not part of the European Union (EU). India is in active talks regarding Free Trade Agreements (FTAs) with the United Kingdom, the EU, and Oman.
