India-EFTA Pact: $100B FDI & 1M Jobs - Goyal Urges Industry Action

Addressing a commemorative session on Friday, marking two years since the signing of the agreement, organised by ASSOCHAM via video conference, the Minister described the pact as a momentous occasion and a major milestone in the nation's economic engagement with Europe.

According to the Ministry of Commerce & Industry, Goyal noted that the India-EFTA TEPA marked the beginning of a deeper economic integration with the continent. He observed that following the conclusion of this agreement, India successfully concluded a deal with the United Kingdom and finalised a trade agreement with the 27-nation European Union, which was described by European Commission President Ursula von der Leyen as the "mother of all deals."

Goyal also highlighted the rapid progress in the ratification of the India-UK trade agreement, expressing optimism that it could enter into force soon after being signed on July 24 during Prime Minister Narendra Modi's visit to Chequers.

The Minister called upon industry associations to actively participate in the transition "from deal to delivery," emphasising that trade agreements are meaningful only when they translate into increased trade flows, investments, and technology partnerships.

He underscored the USD 100 billion investment commitment secured from Switzerland, Norway, Liechtenstein, and Iceland, describing it as an unprecedented achievement in global trade negotiations. Goyal explained that the commitment is not merely an announcement but a legally binding provision, noting that "never before in the history of the World Trade Organization or global trade agreements had a Free Trade Agreement been combined with a legally binding investment commitment."

Further detailing the terms, the Minister pointed out that the agreement includes a safeguard clause allowing India to claw back benefits extended under the FTA if investment commitments are not fulfilled. He remarked that while other countries have begun attempting similar frameworks, none have secured legally binding commitments of this nature.

Highlighting early signs of progress, he noted that Iceland has made a modest beginning with a USD 30 million investment in the fisheries sector in Maharashtra. "The flood starts with a drizzle," the Minister said, expressing hope that initial investments would grow into a much larger wave of capital.

The Minister emphasised that the Government carefully safeguarded sensitive sectors, such as agriculture and dairy, while negotiating the deal. He reiterated that concessions were not provided where they could adversely impact domestic stakeholders, ensuring that genetically modified products were denied market access.

To facilitate businesses, Goyal informed participants that an FTA desk was created in West India to help connect Indian companies with businesses in partner countries. Quoting Prime Minister Narendra Modi, he said the agreement reflects a steadfast commitment to shared prosperity and building a stronger partnership.

Goyal expressed confidence that Indian businesses would achieve significant success by leveraging these global opportunities despite current geopolitical uncertainties.

- ANI