NEW DELHI: The $100 billion foreign direct investment (FDI) commitment made by the European Free Trade Agreement (EFTA) bloc under a free trade agreement could potentially catalyse $400-500 billion in investment proposals in India, Commerce and Industry Minister Piyush Goyal said on Monday.
The pact, officially called the Trade and Economic Partnership Agreement (TEPA), is expected to take effect by the end of this year. The European Free Trade Association (EFTA) comprises Iceland, Liechtenstein, Norway, and Switzerland.
“With this $100 billion FDI, I personally believe that we could be catalysing overall investments of maybe $400 or $500 billion in the Indian ecosystem,” Goyal said at the launch of the EFTA Dedicated Desk.
Boost to investments and jobs
The Desk will serve as a central support system for EFTA companies looking to expand in India, providing market insights, regulatory guidance, business matchmaking, and assistance in navigating India’s policy and investment landscape.
Its establishment is crucial, as under the pact, India has secured an investment commitment of $100 billion over 15 years while offering lower or zero duties on several products, including Swiss watches, chocolates, and cut and polished diamonds. The investment aims to create one million direct jobs, which could further generate 5-6 million indirect employment opportunities.
This marks the first time India has secured such a commitment in any trade agreement.
Fast-tracking TEPA implementation
“In all the four countries, significant steps have been taken to ratify TEPA, and we hope to operationalise it later this year,” Goyal said.
India has also offered EFTA countries dedicated enclaves in either the 20 industrial smart cities being developed by the National Industrial Corridor Development Corporation (NICDC) or the 100 industrial hub-and-spoke model areas announced in the Budget.
“We are in discussions with these countries to see if any of these industrial parks could be dedicated to companies from their respective nations,” Goyal added.
EFTA’s role in India’s trade
Goyal inaugurated the Desk alongside senior representatives from the EFTA bloc, including Helene Budliger Artieda, Swiss State Secretary; Tomas Norvoll, State Secretary of Trade and Industry, Norway; Martin Eyjolfsson, Permanent Secretary of State, Iceland; and Dominique Hasler, Minister of External Affairs, Liechtenstein.
Switzerland remains the largest trading partner and investor in India among EFTA nations, followed by Norway. India received $10.72 billion in FDI from Switzerland between April 2000 and September 2024.
