Commerce and Industry Minister Piyush Goyal said on Wednesday that the four-member European Free Trade Association (EFTA) is keen to invest in India and the domestic industry should take advantage of this opportunity. India and EFTA signed a free trade agreement on March 10. Under this, the group has committed to invest $100 billion in India in 15 years. Also, low or zero duty was agreed on Swiss watches, chocolates and cut diamonds. The members of the European Free Trade Association are Iceland, Liechtenstein, Norway and Switzerland.
FDI of $100 billion
Goyal said that he will leave for Switzerland on Sunday to take forward the EFTA commitments. He also said that this $100 billion commitment is for foreign direct investment and not for portfolio investment. “For the first time in history, an FTA has talked about investment and jobs. If they (EFTA) do not fulfil investment commitments, India can withdraw concessions given in the FTA,” Goyal said at an industry event here. “The enthusiasm I am getting in EFTA gives me confidence that if we all come forward, we can actually exceed the commitments made,” he said.
Target to take exports to $2000 billion by 2030
As per the provisions of the trade agreement between the two sides, if the group of four countries does not fulfil the investment commitments of $100 billion, India will have the option to temporarily withdraw customs duty exemptions on goods from EFTA countries. These investments are to be made in 15 years. After the implementation of the agreement, the first $50 billion investment will be made in 10 years while the remaining in the next five years. The group has also been given a grace period of three years to fulfil the obligations in the trade agreement. Regarding the country’s exports, Goyal said that the target of taking the export of goods and services to $ 2,000 billion by 2030 is achievable.
The country will become the third largest economy in 4 years
He said that given the pace of economic growth of the country, India will become the third largest economy in about four years. The minister also suggested sharing ideas on further reducing the compliance burden from the industry. Goyal also said that India and Britain are committed to the proposed bilateral free trade agreement. He told reporters that the initial statements coming from the new British government are quite encouraging. Newly elected British Prime Minister Keir Stormer spoke to Prime Minister Narendra Modi on Saturday. He said that he is ready to implement an FTA. It will work for both sides. Both the leaders agreed to work towards concluding a mutually beneficial India-UK FTA soon.
