Context:
India and EFTA have progressed a step to enhance investments following the launch of a dedicated desk to facilitate European businesses who may want to upscale their India operations. The news comes ahead of the expected commitment of $100 billion in foreign direct investment each side is going to make forth from the signed trade deal.
Essential Facts of the Trade Deal
- Investment Commitment
- $50 billion to be invested in India over the next 10 years from the day the agreement kicks in
- Then, another $50 billion over the next five years.
- Job Generation
- May provide 1 million direct employment opportunities to Indians within the next 15 years.
- May have a multiplier effect, creating indirect employment for 5 6 million people.
EFTA Members Participating:
- Iceland, Liechtenstein, Norway, Switzerland
- Dedicated Desk
- Game Changer for European Businesses
- Acts as a central support system for EFTA companies that would like to invest, expand, or establish their business operations in India. Helps smooth out the business development process. Makes it hassle free for the flow of capital and addresses problems of regulations
- Strengthen trade and investment ties between India and EFTA.
Economic Gains Available
- $100 billion FDI will unleash total investments of $400 $500 billion in the Indian ecosystem
- India has promised to provide dedicated industrial enclaves to the EFTA nations in: 20 industrial smart cities under the National Industrial Corridor Development Corporation (NICDC)
- 100 industrial hubs are proposed in the Budget
What’s Next?
- The Trade and Economic Partnership Agreement (TEPA) was signed in March last year
- It will go into effect after 4-6 months of completing four EFTA nations’ Parliamentary approvals.
- The decision is under consideration as to dedicate industrial parks for the companies only from some specific EFTA countries.
