India finalizes $100 billion free trade pact with leading European allies

• http://107.21.149.147/international/2024/03/india-has-busted-a-network-of-agents-sending-people-to-war-torn-russia/The EFTA includes Norway, Switzerland, Iceland, and Liechtenstein.
• The agreement follows ongoing negotiations between the UK and India over an FTA for the past two years.
• Ratification is required by both India and the four EFTA nations before it can take effect.

India's trade minister announced the signing of a free-trade agreement (FTA) with a group of four European countries that are not members of the European Union. The deal with the European Free Trade Association (EFTA) will result in investments of $100 billion (£77.8 billion) in India.

The EFTA comprises Norway, Switzerland, Iceland, and Liechtenstein. The announcement coincides with ongoing negotiations between the UK and India over an FTA for the last two years.

"This landmark pact underlines our commitment to boosting economic progress and creating opportunities for our youth," Prime Minister Narendra Modi said in a statement.

"The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations," he added.

After nearly 16 years of negotiations, negotiators have reached an agreement. Under this deal, India will eliminate most import tariffs on industrial goods from the four countries in exchange for investments spanning 15 years.

Analysts anticipate that these investments will cover various industries, including pharmaceuticals, machinery, and manufacturing.

"The agreement enhances market access and simplifies customs procedures making it easier for Indian and EFTA businesses to expand their operations in the respective markets," the EFTA said in a statement.

India and the four EFTA nations must now ratify the agreement before it can take effect, with Switzerland aiming to do so by next year.

India is scheduled to hold general elections this year as Mr. Modi pursues a record third term in office. Over the past two years, India has inked trade deals with Australia and the United Arab Emirates.

Last week, the UK's trade minister, Kemi Badenoch, hinted at the possibility of Britain signing a free trade deal before India's elections but acknowledged that it would pose challenges.

"I suspect that that is not necessarily going to be the case because I don't want to use any election as a deadline," she added.

[embedpost slug="india-has-busted-a-network-of-agents-sending-people-to-war-torn-russia/"]