EFTA’s $100-billion promise to catalyse $ 400-500-billion investment in India: Piyush Goyal – Economy News

The promise of $ 100 billion dollar direct investment by members of European Free Trade Association (EFTA) over 15 years is expected to catalyse overall investment of $400 to $ 500 billion in India, commerce and industry minister Piyush Goyal said Monday.

The $ 100 billion commitment that EFTA members – Switzerland, Norway, Iceland and Liechtenstein agreed to as part of the Trade and Economic Partnership Agreement (TEPA) signed in March 2024 has to be made good over 15 years.

In return for investments these countries will have access to the Indian markets at preferential tariffs. The investments have to lead to creation of 1 million direct jobs. Goyal said total direct and indirect job creation would be 4 million to 5 million.

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To handhold investors rom the EFTA countries a dedicated EFTA Desk was inaugurated in Invest India by Goyal and with Swiss State Secretariat for Economic Affairs (SECO) Helene Budliger Artieda, State Secretary of Trade and Industry, Norway Tomas Norvoll, Permanent Secretary of State, Iceland , Martin Eyjolfsson, Minister of Foreign Affairs, Education and Sports, Liechtenstein Dominique Hasler.

“This desk will cut across all ministries in the central government. It will draw resources from the state governments on a need basis to catalyse 100 billion dollar investment, to fast track it, make it easier to do business in India, ensure seamless flow of capital and resources both ways, and navigate any areas of concern that will crop up,” Goyal said.

The help desk will translate into an office being opened in the EFTA region to have seamless engagement with businesses in four countries, he added.

The ministers from EFTA are in New Delhi with a business delegation from their countries that is seeking opportunities to invest in India.

At the meeting commerce and industry minister offered dedicated enclaves to companies from EFTA in the 20 smart industrial cities that are being set up by National Industrial Corridor Development Corporation (NICDC) or 100 industrial parks that are being built on hub and spoke models. “We are in dialogue with these countries to see if any of these could be dedicated to countries or companies from their respective countries,” the minister added.

Substantial number of EFTA countries see opportunities and potential in the Indian market. High turnout of EFTA business today can throw up ambitions to expand investments and trade with India, minister from Norway Norvoll said. “If the commercial situation is right we will see substantial expansion of trade and investment from EFTA countries going forward,” he added.

India runs a huge trade deficit with EFTA countries. India’s exports to EFTA were $ 1.94 billion in 2023-24 up 0.8% on year while its imports were $ 22 billion up 31% on year. Of the total imports from EFTA, Switzerland alone accounted for $ 21.2 billion. Gold and precious stones accounted for $ 18 billion of the total imports from the region.

Switzerland is the largest trading partner and investor in India followed by Norway in the bloc. India has received $ 10.72 billion foreign direct investment from Switzerland during April 2000 and September 2024.

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