India inks pact with EFTA, gets $100 billion commitment
India on Sunday signed a trade and economic partnership agreement with the European Free Trade Association (EFTA) — a grouping of Switzerland, Norway, Liechtenstein and Iceland — that includes a binding $100-billion investment commitment.
As part of the Trade and Economic Partnership Agreement (TEPA), EFTA has committed to promote investments to increase the stock of foreign direct investments (FDI) in India by $100 billion in the next 15 years, and to facilitate the generation of one million direct employment in India through such investments, the government said in a statement.
«The global leadership of EFTA countries in innovation and R&D across diverse spheres...will open up new doors of collaboration,» PM Narendra Modi said about the trade agreement.
Commerce and industry minister Piyush Goyal said India is signing an FTA with four developed nations for the first time. It is a «modern and ambitious» trade agreement with an important economic bloc in Europe, he said.
FDI of $50 billion is expected to flow in the first 10 years, with another $50 billion expected to come in the following five years. «The investment flow may be larger than we have estimated. We will mutually work out if there is any shortfall in investment,» Goyal said, noting that investment from EFTA has grown at a compounded annual growth rate of 13% in the last decade.
Officials said the agreement gives India the right to rebalance or suspend concessions if the investment value is not realised. They also stated that the deal provides legal
