The commercial pact of India with the EFTA block to enter into force as of Wednesday

The commercial pact of India with four European nations, including Switzerland and Norway, will enter into force as of Wednesday, which increases exports of textiles, leather and food products while attracting investments, said a government statement.

According to the Commercial and Economic Association Agreement, signed last March after almost 16 years of negotiations, the European Free Trade Association, which includes Switzerland, Norway, Iceland E Liechtenstein, will reduce tariff of Efta.

With a population of 13 million and the combined GDP of more than $ 1 billion, the nations of the HCE are the ninth merchant of merchandise in the world and its fifth largest in commercial services.

The agreement occurs when Prime Minister Narendra Modi follows a commercial pact with the European Union and seeks an agreement with the United States, after President Donald Trump doubled tariffs on Indian goods to 50% from August 27 on Russian oil purchases.

The agreement with EFTA goes beyond goods and services, with the aim of attracting direct foreign investments in India of $ 100 billion for 15 years and creating a million jobs, said the Ministry of Commerce.

India has protected its sensitive sectors such as dairy, soybeans, coal and sensitive agricultural products.

India is the fifth largest commercial partner of the EFT after the European Union, the United States, Great Britain and China, and the total two -way trade has $ 25 billion in 2023, according to government estimates.
The Pact is also expected to stimulate Swiss investment, as it reduces tariffs on exports from chocolates to watches and machinery.

The economy of almost $ 4 billion from India, the market of 1.4 billion people and the annual growth of approximately 7% have attracted European companies looking for alternatives to China, amid the tariff pressure of the United States.

India expects its companies to benefit from the pact, without any change in effective taxes on gold imports and preserved protections for sensitive sectors such as pharmaceutical products, medical devices and key agricultural products, the statement added.