16 yrs, 21 rounds of talks: India-EFTA pact a reality

For promised FDI, India's nominal GDP must grow 9.5% in $ terms over 15 yrs

- ASIT RANJAN MISHRA

After 16 years of negotiations, involving 21 formal rounds, India and the four European Free Trade Association (EFTA) countries on Sunday signed a free-trade agreement (FTA), which may be instrumental in India receiving $100 billion as foreign direct investment (FDI) in 15 years with 1 million jobs.

The EFTA countries will get duty-free market access to India for products like Swiss watches and chocolate.

Though investment will flow from private players and the governments of EFTA countries will only nudge them to invest, India can partially withdraw tariff concessions if the investment commitments are not met.

The EFTA bloc, which includes Switzerland, Iceland, Norway, and Liechtenstein, "shall aim to increase" FDI from investors of the EFTA states in India by $50 billion within 10 years of this agreement taking effect and an additional $50 billion in the next five years.

Terming the FTA a watershed moment for both sides, Prime Minister Narendra Modi said it symbolised a shared commitment to open, fair, and equitable trade, as well as generating growth and employment for the youth.