India says Europe trade group commits to $100-billion 15-year deal.

India has agreed to reduce import tariffs on industrial products from four European countries in exchange for a $100 billion investment over 15 years, according to its trade minister. The agreement, signed on Sunday after almost 16 years of negotiations, follows similar pacts with Australia and the United Arab Emirates in recent years. Another agreement with Britain is said to be in its final stages. Prime Minister Narendra Modi aims to achieve annual exports of $1 trillion by 2030.

Under the deal, the European Free Trade Association (EFTA), consisting of Switzerland, Norway, Iceland, and Liechtenstein, will invest $100 billion over 15 years in India's rapidly expanding market of 1.4 billion people, said Trade Minister Piyush Goyal. In return, India will eliminate or gradually reduce high customs duties on 95.3% of industrial imports from Switzerland, excluding gold, either immediately or over time, as stated by the Swiss government.

Industry Minister Jan Christian Vestre mentioned, "Norwegian companies currently face high import duties of up to 40% on certain goods exported to India. With the new agreement, we have secured zero import duties on nearly all Norwegian goods." Goyal added that the agreement includes some new aspects such as intellectual property rights and gender equality. He described it as a modern trade agreement that is fair, equitable, and beneficial for all five countries.

The agreement must be ratified by all five signatories before it can take effect, with Switzerland aiming to do so by 2025. The announcement comes ahead of general elections scheduled for May, in which Modi will seek a third term. India has committed to reducing its "bound tariff rate" on gold from 40% to 39%, but an Indian government official stated that this is not expected to significantly impact gold imports from Switzerland, which were estimated at $16 billion last fiscal year.

Swiss economic official Guy Parmelin noted that the Indian market offers significant opportunities for trade and investment. The pact, the result of 21 rounds of negotiations, makes India the fifth-largest trading partner of the EFTA grouping after the European Union, the United States, Britain, and China, with total two-way trade of $25 billion in 2023, according to estimates by India's trade ministry.

"The agreement includes a comprehensive and legally binding chapter on trade and sustainable development," stated the Swiss government. "This will allow the EFTA states, in particular, to address trade-related sustainability concerns." Analysts suggest that while the agreement may not immediately help India reduce its large trade deficit with the EFTA, it will attract investment in key industries.

"The trade agreement will help attract investment in critical sectors like medical devices, and clean energy, and expand exports to other countries by accessing Swiss and Norwegian technologies," said trade economist Ram Singh, who heads the Indian Institute of Foreign Trade, a think tank based in New Delhi.

भारत का कहना है कि यूरोप व्यापार समूह 100 अरब डॉलर के 15-वर्षीय सौदे के लिए प्रतिबद्ध है।