India Nears a Massive $100 Billion Investment Accord with Swiss and Norwegian Investors

India is on the cusp of sealing a groundbreaking trade agreement that could usher in up to $100 billion in investments from a cohort of European nations over the next 15 years. This arrangement is poised to enhance trade opportunities for India and bring in a substantial foreign investment boost.

Investment Commitment from EFTA

The European Free Trade Association (EFTA), encompassing Switzerland, Norway, Iceland, and Liechtenstein, has pledged to make a significant investment in India, aligned with a trade agreement nearing completion. The details remain under wraps due to the sensitive nature of ongoing discussions.

The Making of a Historic Deal

This deal, once final, would represent a novel type of commitment for India, tying an investment promise into a free trade pact. Although the commitment is aimed to be legally binding, European sources suggest a more aspirational goal-setting approach without strict legal claims.

Switzerland and Norway at the Forefront

Switzerland has been India's most prominent trade ally among the EFTA countries, with bilateral trade reaching $17.14 billion in 2022-23. This agreement, a decade and a half in the making, allows EFTA members to export to India's burgeoning market at reduced tariffs. It could specially benefit the engineered goods, pharmaceuticals, and medical devices sectors.

Benefits to India

Apart from diversifying global supply chains away from China, this deal will catalyze job creation in India, with over a million new jobs anticipated. EFTA's investment will primarily fuel manufacturing ventures. Moreover, it promises easier professional exchanges and some agricultural market accesses.

Investment, Trade, EFTA