FDI with EFTA can catalyse $500 billion investment, says Piyush Goyal

India and European Free Trade Association (EFTA) nations on Monday launched a ‘dedicated desk’ to provide structured support to the European businesses to looking to invest, expand, or establish operations in India, which will catalyse $100 billion foreign direct investment (FDI) commitment under the trade deal signed between both sides.

 

The development comes against the backdrop of an investment commitment made by EFTA nations under the trade agreement--$50 billion investment in India within 10 years of the agreement taking into effect and an additional $50 billion in the next five years. The investment is expected to facilitate the creation of 1 million direct jobs in India in 15 years.

 

The EFTA members include Iceland, Liechtenstein, Norway, and Switzerland. The pact, also known as Trade and Economic Partnership Agreement (TEPA), was signed in March last year. The deal is set to come into effect in the next four-six months after the four nations receive necessary Parliamentary approvals.

 

The dedicated platform will act as a centralized support mechanism for EFTA companies looking to expand in India. It aims to fast track processes to make it easier for companies to do business, ensure seamless flow of capital, navigate areas of concerns, thereby strengthening trade and investment ties between both sides.

 

c said that the $100 billion FDI commitment could help in catalysing as much as $400-500 billion investment proposals in the Indian ecosystem. “With this $100 billion FDI, I personally believe that we could be catalysing overall investments of maybe $400 or $500 billion in the Indian ecosystem,” Goyal told reporters.

 

The minister also said that the one million direct jobs could help in creating 5-6 million jobs directly and indirectly.

 

India has offered EFTA nations an opportunity to have dedicated enclaves in either the 20 industrial smart cities, being developed by National Industrial Corridor Development Corporation (NICDC) or in the 100 industrial hubs announced in the Budget. “We are in dialogue with the countries to see if any of these (industrial parks) could be dedicated to companies from their respective countries,” the minister said.

 

Helene Budliger Artieda, State Secretary for Economic Affairs, Switzerland said that the opening of the EFTA Desk by India and the impressive presence of EFTA companies in Delhi today show that the TEPA is more than just text and promises.

“We are fully committed to implementing the TEPA and bringing this win-win partnership to life,” she said.

 

She further said that despite the uncertainties due to the ongoing geopolitical challenges, she expects the private sector companies to be ‘resilient’.  

 

The platform was inaugurated by Goyal along with the EFTA bloc represented by Helene Budliger Artieda, Swiss State Secretary; Tomas Norvoll, State Secretary of Trade and Industry, Norway; Martin Eyjolfsson, Permanent Secretary of State, Iceland; and Dominique Hasler, Minister of External Affairs, Liechtenstein among other representatives.