Commerce and Industry Minister Piyush Goyal said on Saturday that the Free Trade Agreement between India and European Mukti trade union (EFTA) will be applicable from October 1. Both sides signed trade and economic participation agreement on 10 March 2024.
Under the Free Trade Agreement, India has received a deal of US $ 100 billion in 15 years from EFTA Group including Iceland, Liquidanteen, Norway and Switzerland. Under this agreement, many products such as Swiss watch, chocolate and chopped diamonds are allowed to enter India on low or different fees. That is, the price of these things in India will already decrease.
How will India invest $ 100 billion?
Under this agreement, India has an investment plan of $ 100 billion. In such a situation, there will be an investment of $ 50 billion in 10 years and then in the next five years. This investment is expected to provide direct employment to 10 lakh people in India and it is being considered as the best deal by India so far, as India has not done such an agreement with any other.
Switzerland the largest partner
Union Minister Piyush Goyal said that the agreement took about 16 years to complete and it is important for India as it has opened its markets for many products in EFTA countries. Switzerland is India’s largest business partner in this group, while the amount of business with the remaining 3 countries is low.
These things will become cheap
India puts up to 82.7 percent tariffs on things coming from EFTA, including more than 80 percent of gold imports. Now Indian consumers will get high-quality Swiss products like watches, chocolate, biscuits and watches at low prices from this deal. Because the customs duty on these items has been ended in 10 years.
Talking about service sectors, India has offered EFTA to invest in 105 sub sectors including business service, computer service, distribution and health. India has committed in 128 sub -sector from Switzerland, 114 from Norway, 107 from Lichetin and 110 sub -sector from Iceland. The sectors that are going to benefit include legal, research and development, computers, accounting and audit service.
How beneficial for India?
This agreement gives Indian exporters a chance to be registered in the European Union markets. Global service of Switzerland goes to more than 40 per cent of the European Union, which gives Indian companies an opportunity to use Switzerland as a base to increase their reach to the European Union. India-EFTA bilateral trade stood at US $ 24.4 billion in 2024-25.
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