India and European bloc EFTA sign US$100 billion agreement
March 10, 2024
India and the four member states of the European Free Trade Association (EFTA) on Sunday signed an economic pact worth more than 100 billion dollars (91.4 billion euros).
EFTA members are Switzerland, Norway, Iceland and Liechtenstein, none of which are part of the European Union.
The agreement must be ratified by all five signs before it can enter into force. Switzerland plans to do so by 2025.
What do we know about the India-EFTA agreement?
Under the deal, India will suspend most import tariffs on EFTA industrial products in exchange for investments worth $100 billion over 15 years, Indian Commerce Minister Piyush Goyal said.
The agreement was signed after 21 rounds of negotiations over 15 years.
“It is a modern, fair, equitable and advantageous trade agreement for all five countries,” Goyal said.
Switzerland’s government said New Delhi will suspend or partially remove customs duties on 95.3% of Switzerland’s industrial imports, either immediately or over time.
In a separate statement, Oslo said it had achieved almost zero import taxes on most Norwegian products.
“Norwegian companies exporting to India today face high import duties of up to 40% on certain products,” said Norwegian Industry Minister Jan Christian Vestre.
“With the new agreement, we guarantee zero import taxes on almost all Norwegian products,” he said.
Deal arrives as Modi campaigns on economic credentials
The announcement comes as Indian Prime Minister Narendra Modi campaigns for re-election in May’s general elections.
His campaign emphasized the high GDP growth during the last quarter and his government’s plans to transform India into a developed country.
Modi aims to reach annual exports of $1 billion by 2030. In recent years, India has signed trade agreements with Australia and the United Arab Emirates.
India is the EFTA bloc’s fifth largest trading partner, after the European Union, the United States, the United Kingdom and China. The Ministry of Commerce in New Delhi estimated that bilateral trade with the group would reach US$25 billion in 2023.
sdi/nm (Reuters, AFP)
Source: DW
Lori Barajas is an accomplished journalist, known for her insightful and thought-provoking writing on economy. She currently works as a writer at 247 news reel. With a passion for understanding the economy, Lori’s writing delves deep into the financial issues that matter most, providing readers with a unique perspective on current events.