India's ties with some European countries are strengthening in the form of new free trade agreements and huge investment plans.
advertisementIndia has signed its first trade deals with Switzerland, Norway, Iceland and Liechtenstein, ending 16 years of negotiations, Bloomberg reports.
These countries have formed the European Free Trade Association (EFTA) and will invest in India as part of the free trade agreement in exchange for easier access to the world's most populous country, a market of 1.4 billion people. We agreed on that.
An unusual feature of this free trade agreement (FTA) is that it comes with an investment guarantee, but how binding it will be remains a subject for final negotiations.
The final amount could reach $100 billion over the next 15 years, the report said, citing people familiar with the matter. However, the exact amount will also depend on haggling during final negotiations.
The path to signature is fast-tracked, with general elections likely to be held in India in the coming months, and a deal could be signed before the start of April.
In a statement to Bloomberg, the Swiss Economy Ministry said it could not provide further details as the text of the agreement is “still in its final stages” but “confirmed that an agreement has been reached regarding patent protection, which has been controversial in the past.” Ta. A chapter on new types of investment promotion is also included. ”
What will this trade deal bring?
India's bilateral trade with EFTA countries is mainly driven by Switzerland's contribution, with two-way trade with the entire group at $18.66 billion in 2022-23, according to Indian Ministry of Commerce statistics cited by Bloomberg. Of that amount, it was worth $17.14 billion.
The media also cited confidential sources and said the new agreement will bring investment to India, mainly from private companies, with manufacturing projects potentially creating more than 1 million jobs in the South Asian country. It was reported that the focus will be on
India is bouncing from trade deal to trade deal.
In addition to this deal between EFTA and India, another major trade deal with the UK is also under negotiation, but it is unlikely to be finalized before India's elections this year. Discussions are continuing with the EU and Australia.
The Indian government has also just signed an investment agreement with the United Arab Emirates, with the country's largest sovereign wealth fund, Abu Dhabi Investment Authority (ADIA), investing 4 billion to 5 billion yen in India's newest special financial zone, Abu Dhabi Investment Authority. He promised to establish a dollar fund. Gujarat International Finance Tech City.
India, the world's fifth largest economy, is attracting attention from several major economies. Companies, including in the United States and the European Union, are stepping up efforts to increase their independence from China and diversify their supply chains.
India is one of the world's fastest growing large economies, with an expected annual GDP growth rate of over 8%. According to S&P Global, a major financial research firm, India is expected to become the third largest economy by 2030.
