India sealed a 15-year trade accord with four European countries on Sunday, 10 March 2024. According to the Associated Press (AP), Iceland, Liechtenstein, Norway, and Switzerland have agreed to invest $100bn over the period.
$100bn Trade Agreement to Boost India’s Economy
This treaty will create one million direct jobs over the next 15 years to help address India’s societal imbalance of wealth and poverty. In return, India committed to reducing import duties on products from the countries that form the European Free Trade Association (EFTA).
AP reported this trade agreement covers ‘goods and services, investment promotion and cooperation, intellectual property, government procurement, trade and sustainable development, and dispute settlement’. Piyush Goyal, the Indian Commerce and Industry Minister, indicated this is the first time India has sealed a deal with a prominent economic European bloc.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
He believes it will open doors to European and global markets. The minister further indicated India is busy negotiating trade treaties with Britain and the European Union. EFTA noted:
The landmark agreement between India and EFTA is set to bring significant economic benefits, such as better integrated and more resilient supply chains, new opportunities for businesses and individuals on both sides leading to increased trade and investment flows, job creation, and economic growth.
Currently, the USD/INR exchange rate sits at more than ₹82 for one US dollar. Guy Parmelin, Switzerland’s Commerce and Industry Minister, said on behalf of EFTA:
EFTA countries gain market access to a major growth market. Our companies strive to diversify their supply chains while rendering them more resilient. India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs.
