India signs trade agreement with EFTA

India gets commitment of $100 billion foreign direct investment in next 15 years, and market access for exports.

Setting an ambitious trajectory of growth in trade and economic relations with a Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association on Sunday, India has achieved a binding commitment of USD 100 FDI, a window to Indian exporters to access large European and global markets and an impetus to 'Make in India' by encouraging domestic manufacturing in sectors such as infrastructure and connectivity, manufacturing, machinery, pharmaceuticals, chemicals, food processing, transport and logistics, banking and financial services and insurance.

The deal with EFTA --comprising Switzerland, Iceland, Norway & Liechtenstein - an an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four member states, follows approval by the Union Cabinet chaired by Prime Minister Narendra Modi and marks the most substantial gains ever by India in the history of its free trade agreements. As per the deal, the EFTA will promote investments with the aim to increase the stock of foreign direct investments by USD 100 billion in India in the next 15 years. The investments do not cover foreign portfolio investment.

For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs.