Synopsis
On February 10, Finance Minister Nirmala Sitharaman met with Swiss and Liechtenstein officials to discuss enhancing economic ties with the EFTA. This includes the establishment of an EFTA desk in India to facilitate trade and investment, aiming for a significant increase in FDI and job creation over the next 15 years.Key Takeaways
- Nirmala Sitharaman held talks with Swiss and Liechtenstein officials.
- Focus on strengthening economic relations with EFTA.
- Inauguration of EFTA Desk in Bharat Mandapam.
- TEPA agreement aims for $100 billion investment in India.
- Trade between India and EFTA reached $18.66 billion in 2022-23.
New Delhi, Feb 10 (NationPress) - Finance Minister Nirmala Sitharaman engaged in productive talks on Monday with Helene Budliger Artieda, the Swiss State Secretary for Economic Affairs, as well as Dominique Hasler, the Foreign Minister of the Principality of Liechtenstein, aimed at reinforcing economic partnerships with these two nations in the European Free Trade Association (EFTA).
The discussions with Ms. Helene Budliger Artieda took place in New Delhi, where they examined potential avenues for enhanced cooperation in investment, innovation, and economic progress, as reported by the Finance Ministry on X.
Additionally, the Finance Ministry noted that Sitharaman's meeting with Dominique Hasler focused on exploring opportunities for economic collaboration, investments, and mutual benefits for both countries.
In a notable move to strengthen ties with the EFTA, Piyush Goyal, the Minister for Commerce and Industry, along with his EFTA counterparts, inaugurated the EFTA Desk at Bharat Mandapam in the national capital on Monday.
The purpose of the Desk is to foster trade, investment, and business facilitation between India and the EFTA, supporting a commitment outlined in the trade agreement to encourage private sector investments of $100 billion in India over the next 15 years.
The Trade and Economic Partnership Agreement (TEPA) between India and the EFTA, which encompasses Iceland, Liechtenstein, Norway, and Switzerland, is anticipated to be implemented later this year, according to Goyal's announcement during the launch.
Goyal expressed optimism about operationalizing the TEPA by the end of this year, noting that while all four countries are undergoing their internal ratification processes, India has already approved the agreement. The completion of the parliamentary processes in the other nations may take approximately four to six months, aiming for a feasible implementation by the fall of 2025.
Although the trade and investment agreement between India and the EFTA was signed on March 10, 2024, its implementation is pending due to protracted ratification procedures.
Helene Budliger Artieda elaborated that Switzerland follows a two-chamber system: "The TEPA has been approved by the first chamber with unanimous support and is now progressing to the second chamber, followed by a referendum."
The ratification of the trade agreement is also pending in the parliaments of Liechtenstein and Norway.
In the fiscal year 2022-23, total trade between India and the EFTA nations reached approximately $18.66 billion, with Switzerland contributing the largest share, followed by Norway.
The India-EFTA Dedicated Desk will serve as a centralized support hub for EFTA-based companies aiming to expand operations in India, offering market insights, regulatory guidance, business matchmaking, and assistance with navigating India's policy and investment landscape.
The EFTA is committed to boosting investments to increase the stock of foreign direct investments in India by $100 billion over the next 15 years, which is expected to generate 1 million direct jobs in India. This commitment excludes foreign portfolio investments.
The EFTA has proposed to provide 92.2 percent of its tariff lines, which covers 99.6 percent of India's exports to the region.
The EFTA's market access offerings cover all non-agricultural products and provide tariff concessions for Processed Agricultural Products (PAP).
Under the agreement, India will offer 82.7 percent of its tariff lines, which encompasses 95.3 percent of EFTA's exports, with over 80 percent of imports being gold.
Notably, the effective duty on gold imports remains unchanged.
Concerns related to the PLI scheme in sectors like pharmaceuticals, medical devices, and processed foods have been addressed in the offers extended.
However, sectors such as dairy, soya, coal, and certain sensitive agricultural products remain excluded from the agreement.
