India, EFTA sign trade deal to invest $100 billion over 15 years, create a million jobs

India and four European Free Trade Association (EFTA) nations - Iceland, Liechtenstein, Norway and Switzerland, have signed a Trade and Economic Partnership Agreement (TEPA).

With the signing of a Trade and Economic Partnership Agreement (TEPA) between India and the EFTA, India is expected to get $100 billion in investment from the EFTA countries in the next 15 years and expects to generate one million jobs.

Union Commerce Minister Piyush Goyal called the agreement as the first ever for India with the Developed western world and European countries. He also said that an equitable and balanced agreement has culminated after 16 years of negotiations. The TEPA covers modern issues like IPR, environment, trade and gender and also reflects a resurgent India, according to Goyal.

India and EFTA member countries were negotiating TEPA since 2008. As part of talks, India had sought inclusion of services as part of the deal, with an aim to enable domestic manufacturing and investment by Swiss companies. While Switzerland already levied zero customs duty on almost all its goods, India had sought a commitment on investment so that the zero duty on goods could be balanced and India's interests are protected in the bargain.

Before the TEPA was signed, the EFTA grouping had 29 free trade agreements (FTAs) with over 35 partner countries. EFTA countries are not a part of the European Union, and currently enjoy a favourable trade balance with India.

While India's exports to EFTA countries in financial year 2022-23 were $1.92 billion, India had imported goods and services worth $16.74 billion from EFTA nations in financial year 2022-23. India and EFTA have held negotiations on several chapters including trade in goods & services, intellectual property rights (IPRs), investment promotion and cooperation, rules of origin, trade facilitation and trade and sustainable development.

EFTA member Switzerland is India's largest source of gold imports, and enjoys a huge trade surplus with India. In financial year 2022-23, India had a trade deficit of $14.45 billion with Switzerland, with net imports worth $15.79 billion and net exports worth $1.34 billion.