India, EFTA states launch new body to facilitate $100 billion investments | Latest News India

NEW DELHI: India and the European Free Trade Association (EFTA), which comprises Iceland, Liechtenstein, Norway and Switzerland, on Monday launched a new body that will facilitate investments of $100 billion envisaged under a trade deal signed last year.

The two sides announced the launch of the EFTA Desk by Invest India, the national investment promotion and facilitation agency, describing it as a key step towards deepening economic engagement. The desk will serve as a central point of contact for businesses from the four European countries looking to invest in India, and will help address investor concerns and resolve issues.

The Trade and Economic Partnership Agreement (TEPA) signed by India and the EFTA states in March 2024 envisages investments of $100 billion and creation of a million jobs over 15 years by the four countries. The TEPA is yet to formally enter into force, largely because of the lengthy ratification process in Switzerland.

EFTA said in a statement that businesses in the four countries are preparing for exploring investment opportunities and strengthening commercial ties with Indian partners even before the trade deal’s entry into force. More than 100 businesses from the EFTA states are visiting India this week to explore opportunities.

“The economic ties between the four EFTA states and India hold immense potential. The EFTA industries excel in areas such as precision engineering, renewable energy, pharmaceuticals, and financial services – sectors that align with India’s growth ambitions and innovation-driven economy,” the statement said.

The EFTA Desk at Invest India will also serve as a central point of contact for providing support on expansions into new markets and maintaining a comprehensive database of investment opportunities.

Commerce and industry minister Piyush Goyal said the $100 billion FDI commitment could help in catalysing as much as $400-500 billion investment proposals in the Indian ecosystem. “With this 100 billion FDI, I personally believe that we could be catalysing overall investments of may be USD 400 or USD 500 billion in the Indian ecosystem,” he said.

Norway’s deputy minister of trade Tomas Norvoll said the dedicated EFTA Desk marks an “important milestone in our joint efforts in making business and investment easier”, while Iceland’s permanent secretary of state for foreign affairs, Martin Eyjólfsson, highlighted the potential in in sectors ranging from renewable energy to fisheries and the shared responsibility to facilitate trade and investment opportunities.

Switzerland’s state secretary for economic affairs Helene Budliger Artieda said the EFTA Desk shows the TEPA is “more than just text and promises”, and Liechtenstein’s foreign minister Dominique Hasler her country’s companies will make a high-quality contribution to the realization of India’s economic aspirations in infrastructure, boosting manufacturing and fostering innovation.

India’s total imports from the EFTA countries were worth €3.2 billion in 2023, while the country’s exports to the bloc totalled €2.32 billion in the same period. The average growth rate of India’s imports over the past five years was 7.7%, while the average growth rate of its exports in the same period was 5.3%.