In a move that is expected to have ripple effects across different sectors, India has signed a free trade pact or a Trade and Economic Participation Agreement (TEPA) with the EFTA countries.
The EFTA or The European Free Trade Association is an intergovernmental organization, focused on further enhanced integration of trade. This bloc consists of Switzerland, Iceland, Liechtenstein and Norway.
This deal, with a preliminary value of about USD 100 billion is expected to assist in fostering investments and exports of key domestic services sectors. This is likely to benefit areas of IT, audio-visual. In addition it will also help in the movement of skilled professionals.
As per reports, the deal would see an investment of USD 50 billion in the first 10 years. This will be followed by an investment of another USD 50 billion, over the five years after that.
The said investment is also expected to engender employment of 1 million in the process. The deal is expected to assuage the duty burden on industries as well.
These developments have instilled hope of extension of the agreement to other sectors, including pharma and food processing the near future.
PM Modi's Message
Prime Minister Modi shared a message on the occasion of the deal being signed. Modi termed the Trade and Economic Participation Agreement as 'pioneering'. PM Modi further added and said, "The culmination of efforts to finalise an innovative, well-balanced trade deal that reflects our respective developmental aspirations is commendable. One of the most pioneering free trade agreements ever concluded between our countries, TEPA emphasises our steadfast commitment to shared prosperity and our drive to cultivate a stronger, more inclusive partnership between India and EFTA, furthering the aspirations of our people."
