India, EFTA Set To Sign Trade Deal Worth $100 Billion

New Delhi, Mar 9 (KNN) India is poised to ink a significant trade agreement with the European Free Trade Association (EFTA) members, including Iceland, Switzerland, Norway, and Liechtenstein, heralding a new era of economic partnership on Sunday. 

With an investment worth USD 100 billion spanning over 15 years, the deal is expected to bolster economic ties and pave the way for job creation in India, reported BS. 

The trade pact, known as the Trade and Economic Partnership Agreement (TEPA), marks India's first such agreement with any European nation or bloc and signifies a landmark achievement in its global trade relations. 

Under the TEPA, both India and EFTA members will grant duty-free access to various sectors, fostering greater market integration and facilitating smoother trade flows.

Negotiations between India and the EFTA nations have been ongoing for over a decade, witnessing several rounds of discussions and intermittent suspensions. 

However, with the imminent signing of the TEPA, these efforts are poised to culminate in a mutually beneficial agreement that promises substantial economic gains for both sides.

Switzerland, as India's largest trading partner among the EFTA nations, holds particular significance in these negotiations. 

The trade deficit between India and EFTA countries, which stood at USD 14.8 billion in FY23, underscores the need for a balanced agreement that addresses concerns regarding trade imbalances and ensures equitable outcomes for all parties involved.

Additionally, India is actively pursuing other trade agreements on multiple fronts, including ongoing efforts to finalise a free-trade agreement with Oman. 

With the general elections looming, the urgency to conclude these agreements before the onset of the model code of conduct underscores India's commitment to fostering robust trade relations on the global stage.

While negotiations with the United Kingdom (UK) have reached an advanced stage, the timing of the agreement's finalisation remains uncertain due to procedural constraints imposed by the model code of conduct. 

Nonetheless, officials remain optimistic about the prospects of reaching a favourable outcome in due course.

(KNN Bureau)