India-EFTA Trade Pact Expected to Be Implemented by September 2024, Says Piyush Goyal

The free trade agreement (FTA) between India and the European Free Trade Association (EFTA) is anticipated to be effective from September, according to Commerce and Industry Minister Piyush Goyal. The Trade and Economic Partnership Agreement (TEPA) was signed on March 10, 2024. This agreement promises India an investment of USD 100 billion over 15 years, while allowing products like Swiss watches and chocolates at reduced or zero duties.

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Goyal mentioned that the agreement has been approved by the Parliaments of all four EFTA countries: Iceland, Liechtenstein, Norway, and Switzerland. However, in Switzerland, there is a period for objections open until July 10. July and August are typically holiday months in Switzerland. Goyal is currently visiting Switzerland to engage with leaders and businesses to enhance trade and investment relations between the two nations.

Trade and Investment Opportunities

During his visit, Goyal held discussions with over a dozen companies, many of which are eager to invest in India. Swiss companies have shown interest in sectors such as pharmaceuticals, cybersecurity, and machinery manufacturing. "Lots of excitement here for India," he remarked. He also suggested that some companies consider holding board meetings in India to explore investment opportunities firsthand.

Goyal highlighted the potential for manufacturing machines in India, noting that there is 100 per cent foreign direct investment (FDI) allowed in this sector. This move could reduce India's reliance on machine imports from China. He emphasised that India's favourable investment climate is partly due to the government's policies over the past 11 years.

Expanding Global Trade Relations

India is actively negotiating FTAs with several countries, including New Zealand, Chile, Peru, Oman, and the European Union (EU). Goyal indicated that a trade agreement with the EU might be finalised sooner than expected. "Discussions are going on with the EU... we may finalise BIT bilateral investment treaty also," he stated.

Reflecting on the achievements of the NDA government over the past 11 years, Goyal noted that India has become a preferred destination for both business and services. He mentioned that nearly 2,000 global capability centres have been established in India. Additionally, schemes like Production Linked Incentive (PLI) have significantly boosted air conditioner manufacturing in India by increasing localisation from 20 per cent to about 65 per cent.

These developments underscore India's growing appeal as an investment hub due to effective governance over the last decade. The world now recognises India as an ideal place for business activities, according to Goyal.

With inputs from PTI