US$ 100 billion FDI commitment under trade pact with European Free Trade Association (EFTA) can catalyse US$ 400-500 billion investment: Union Minister of Commerce & Industry Mr. Piyush Goyal

Union Minister of Commerce & Industry, Mr. Piyush Goyal, announced that the Rs. 8,74,500 crore (US$ 100 billion) Foreign Direct Investment (FDI) commitment by the European Free Trade Association (EFTA) under a free trade agreement could potentially lead to Rs. 34,98,000 crore – 43,72,500 crore (US$ 400-500 billion) in investment proposals for India. The agreement, known as the Trade and Economic Partnership Agreement (TEPA), is expected to take effect by the end of this year. EFTA members, including Iceland, Liechtenstein, Norway, and Switzerland, have pledged the FDI over 15 years, which aims to create one million jobs in India. The pact also allows products like Swiss watches, chocolates, and polished diamonds to be imported at lower or zero duties. 

A key initiative under the agreement is the establishment of an EFTA Dedicated Desk in India, which will support EFTA companies looking to expand in the Indian market. This Desk will provide market insights, regulatory guidance, and business matchmaking. Additionally, India has offered dedicated enclaves in industrial zones for EFTA companies, fostering further investment. In 2023-24, India-EFTA trade reached Rs. 2,09,880 crore (US$ 24 billion), with Switzerland being the largest trading partner. The FDI commitment and related initiatives are expected to generate significant direct and indirect employment opportunities, potentially creating five to six million jobs. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.