Short Article

20-03-2024 | 15:24 PM

India-EFTA Trade Deal

India has recently signed a free trade agreement (FTA) with four European countries: Iceland, Liechtenstein, Norway, and Switzerland.

Key Highlights

Signed between India and four European countries: Iceland, Liechtenstein, Norway, and Switzerland. 

Objectives

• The FTA envisions a goal of reaching $100 billion in investments in India and creation of 1 million jobs within 15 years. 

• It will ensure tariff reduction, an increase in market access, and the simplification of customs procedures. 

• For the first time, the FTA also included a chapter on commitments to human rights and sustainable development.

• The pact could serve as a template when dealing with developed nations, which will have greater market access in a high-tariff country like India and have investments to offer.

European Free Trade Association (EFTA)

• It is an intergovernmental organisation set up to promote free trade and economic integration between its four member countries: Iceland, Liechtenstein, Norway, and Switzerland. 

• It was founded by the Stockholm Convention in 1960.