See The Amazing India Make Dollar 100B Valuable Trade Deal

While the UK continues to struggle to iron out the specifics of a free trade agreement with India following Brexit, New Delhi has instead sealed a historic pact with four European countries, claiming that this will lead to $100 billion (£78 billion) in investment in the country.

After 16 years of discussions, an agreement was struck on Sunday between India and the European Free Trade Association (Efta) bloc of non-EU countries, namely Norway, Switzerland, Iceland, and Liechtenstein. In addition, the EU is racing to finalise a trade agreement with India.

As per the agreement, over a million jobs will be created in India over the next 15 years by the four European countries investing $100 billion.

India would abolish or partially remove the extremely high customs taxes that are currently imposed on industrial items coming from the four nations in exchange.

With only a few days remaining before the anticipated start of the general election campaign season—during which the Indian government is forbidden from making significant announcements that could garner significant support—the Narendra Modi administration presented the pact at a meeting in New Delhi. Although the precise dates have not yet been announced, India’s elections are scheduled to take place around mid-May.

It was a “watershed moment,” according to Mr. Modi, when “one of the most pioneering free trade agreements ever” came to an end.

The discussions for a UK-India free trade agreement, which would quadruple trade to £86 billion, are currently locked in the final stages after roughly 14 rounds of talks. This means that India has already signed three trade agreements in the last two years, with Australia, the UAE, and now the EFTA group. Given that the UK will also be holding elections later this year, an agreement is currently not seen as likely until after both nations have elected new governments.

The agreement with the European Union, according to Indian Trade Minister Piyush Goyal, represents the “first time in the history of the world that we are inking an agreement with a binding commitment” for investment.

The bloc’s pharmaceutical and medical device industries will benefit from the accord. Exporters from India will have easier access to European markets for their rice and other products, and the cost of luxury Swiss watches will steadily decline in India.

The Swiss government predicts gains for the luxury goods, transportation, and machinery industries in Switzerland. Switzerland’s transport businesses are invited to invest in India’s railways.

With lower tariffs thanks to the agreement, Efta countries can now export electrical machinery, different engineering items, and processed food and drinks to a possible 1.4 billion customers.

The agreement must now be ratified by India and the other four EFT members before it can go into force. By the next year, Switzerland is anticipated to ratify it.
According to analysts, the agreement will aid in attracting investment into important industries, even though it might not instantly assist India in closing a sizable trade deficit with the European Union.