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India is set to receive USD 100 billion in investments from the European Free Trade Association (EFTA) over the next 15 years as part of a trade agreement signed in March 2024. The deal, which becomes effective from October, will see funding channeled into infrastructure, manufacturing, pharmaceuticals, and other key sectors. In return, India has agreed to reduce or eliminate tariffs on products such as Swiss watches, chocolates, and polished diamonds. Meanwhile, the US has increased duties on seafood and automobiles, affecting Indian exporters.
India has secured a landmark commitment of USD 100 billion in investments from the European Free Trade Association (EFTA) under a trade agreement signed with the bloc earlier this year. The EFTA nations Iceland, Liechtenstein, Norway, and Switzerland have pledged to invest in critical sectors like infrastructure, manufacturing, machinery, pharmaceuticals, chemicals, food processing, logistics, renewable energy, and financial services. Advertisement
This trade agreement, finalised in March and set to come into force this October, is expected to drive significant long-term capital inflows over a 15-year period. As part of the deal, India has agreed to provide tariff concessions on several EFTA-origin goods, including Swiss watches, chocolates, and cut and polished diamonds, allowing these products entry at reduced or zero import duties.
Commerce and Industry Minister Piyush Goyal shared these developments in a written reply to the Lok Sabha, affirming that the government has already put in place facilitation systems to ensure smooth investment inflows linked to this trade pact.
EFTA, although not part of the European Union, has independently negotiated this comprehensive trade and economic partnership with India, which has been in discussion for over 15 years before finally reaching an agreement.
In a related update, Minister of State for Commerce and Industry Jitin Prasada clarified that while the United States had previously announced a 26% reciprocal tariff on select Indian exports such as seafood the measure is yet to be implemented. However, the US has already imposed an additional 10% duty on seafood imports from all countries, including India and Ecuador. Further, Indian auto exporters are now facing increased trade barriers in the US, with a 25% tariff on automobiles in effect since early April and a similar duty on auto parts applicable since May.
Source PTI
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