India and EFTA will sign trade agreement, investment in service sector will get a boost

A free trade agreement will be signed by India and the European Free Trade Association (EFTA). which should encourage exports and investment in important domestic services industries like the transportation, information technology, and audio-visual sectors. Notably, Iceland, Liechtenstein, Norway, and Switzerland are members of the European Free Trade Association (EFTA).

According to the person with knowledge of the situation, EFTA is anticipated to contain a legal commitment aimed at encouraging investment and job creation in India for the first time in the history of free trade agreements (FTAs). The industries connected to practically all industrial goods exported from India stand to gain from this agreement.

Another official said Indian processed agricultural products may also get greater market access in EFTA countries. Besides, sectors like pharma, medical devices and processed food are also expected to be included in the agreement. Items such as soya, dairy and sensitive agricultural products will be placed on the exclusion list, meaning no duty concessions will be given in the agreement for these items.

The fourteen chapters of the agreement address government procurement, trade facilitation, intellectual property rights (IPR), trade in services, rules of origin, trade in goods, investment promotion and cooperation, and technical trade barriers. Since January 2008, India and EFTA have negotiated an agreement to strengthen their economic ties. The Global Trade Research Initiative (GTRI), an economic think tank, commented on the agreement and stated that there would be no benefit because industrial goods, which make up 98% of India's exports to Switzerland, are already entering the country duty-free.