India, EFTA to sign trade pact today

INDIA AND FOUR-NATION European bloc EFTA will sign a free trade agreement on Sunday, which is likely to help promote investments and exports of key domestic services sectors such as IT, audio-visual, and movement of skilled professionals, an official said.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway and Switzerland.

The official said that for the first time in the history of free trade agreements (FTAs), a legal commitment is expected to be included in the pact about promoting target oriented investment from EFTA to India and creation of employment.

India has sought an investment commitment of $50 billion during the first ten years after the implementation of the agreement and another $50 billion over the next five years from the member countries of the bloc and to facilitate the generation of 1 million direct employment in India through such investments.

This commitment would be linked to duty reduction under the agreement.Sectors related to almost all the industrial goods exported from India to the bloc are likely to benefit from the agreement.Another official said that Indian processed agricultural products may also get greater market access in EFTA countries. Besides, sectors like pharma, medical devices and processed food (these segments are covered under the production linked incentive scheme) are expected to figure in the agreement.