India signs $100bn free trade deal with four European nations
Four European nations that are members of the European Union and India have signed a free trade agreement (FTA).
According to India’s trade minister, the agreement with the European Free Trade Association (EFTA) will result in investments worth $100 billion (£77.8 billion).
The EFTA is made up of Norway, Switzerland, Iceland and Liechtenstein.
The announcement comes as the UK and India have been holding negotiations over an FTA for the last two years.
“This landmark pact underlines our commitment to boosting economic progress and creating 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 bonds with EFTA nations,” he added.
The agreement comes after almost 16 years of negotiations. Under this deal, India will lift most import tariffs on industrial goods from the four countries in return for investments over 15 years.
It is anticipated that the investments will come from a variety of sectors, such as manufacturing, machinery, and pharmaceuticals.
India has signed trade agreements with the United Arab Emirates and Australia in the past two years.
The trade minister for the United Kingdom, Kemi Badenoch, stated last week that it would be “challenging” for Britain to sign a free trade agreement before India’s elections.
Source: BBC
