India-EFTA trade pact marks a `watershed moment’ opening huge economic opportunities: Modi

The India-EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, committing a flow of $100 billion investments into India from the bloc over 15 years, marked a “watershed moment” in the bilateral relationship between India and the EFTA countries of Switzerland, Norway, Iceland and Liechtenstein opening up enormous trading and investment opportunities, Prime Minister Narendra Modi has said.

“The trade agreement symbolises our shared commitment to open, fair, equitable trade, as well as generating growth and employment for the youth,” Modi said in his statement read by Commerce & Industry Minister Piyush Goyal at the signing ceremony of the TEPA between India and the European Free Trade Association (EFTA) countries  in New Delhi on Sunday.

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Commitment from TEPA countries to invest $100 billion in India over 15 years was a unique one, Goyal pointed out. “It is for the first time in the history of the world that we are inking an FTA with a binding commitment to invest $100 billion in India from EFTA countries,” he said.

The pact provided a big opportunity for businesses from sectors such as pharmaceuticals, medical devices, food, R&D and many more, he added.

The EFTA-India TEPA was signed by Goyal, Swiss Federal Councillor Guy Parmelin, Iceland Foreign Affairs Minister Bjarni Benediktsson, Liechtenstein Foreign Affairs Minister Dominique Hasler and Norwegian Minister of Trade and Industry Jan Christian Vestre.

“EFTA countries gain market access to a major growth market. Our companies will 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.  All in all, the TEPA will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA States,” Swiss Federal Councillor Guy Parmelin said at the signing ceremony speaking on behalf of the EFTA Member States.

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The TEPA will make it easier for India to gain access to innovative technologies of the EFTA countries supporting its manufacturing potential and thus contributing to the initiative ‘Make in India’, Parmelin added.

The PM said the culmination of efforts to finalise an innovative, well-balanced trade deal that reflected respective developmental aspirations was commendable. “One of the most pioneering free trade agreements ever concluded between our countries, TEPA emphasises our steadfast commitment to shared prosperity and our drive to cultivate a stronger, more inclusive partnership between India and EFTA, furthering the aspirations of our people,” he said.