The agreement now must be ratified by India and four EFTA countries before it can come into force.
- EFTA includes Norway, Switzerland and Iceland.
- Agreement signed after almost 16 years of negotiations.
- India also signed trade agreements with Australia and the United Arab Emirates.
India on Sunday signed a free trade agreement (FTA) with the European Free Trade Association (EFTA) that will attract around $100 billion in investments in the country, according to the nation's Commerce Minister Piyush Goyal.
The announcement of the agreement with the EFTA (comprising Norway, Switzerland, Iceland and Liechtenstein) comes amid negotiations between India and the United Kingdom on an FTA for the last two years, bbc reported.
“This historic pact underlines our commitment to drive economic progress and create opportunities for our youth,” Prime Minister Narendra Modi said in a statement.
“The times ahead will bring more prosperity and mutual growth as we strengthen our ties with the EFTA nations,” he added.
India will remove major tariffs on industrial products from the four nations in exchange for 15 years of investments in pharmaceuticals, machinery and manufacturing as part of the deal that comes after nearly 16 years of negotiations.
“The agreement improves market access and simplifies customs procedures, making it easier for Indian and EFTA companies to expand their operations in the respective markets,” EFTA said in a statement.
The agreement now needs to be ratified by India and the four EFTA countries before it can come into force, something Switzerland aims to do next year.
India, which will hold a general election this year, has signed trade deals with Australia and the United Arab Emirates in the past two years.
UK Trade Minister Kemi Badenoch said last week that while it is possible for Britain to conclude a free trade deal before India's election, it would still be “challenging”.
“I suspect that won't necessarily be the case because I don't want to use any election as a deadline,” he added.
