On Sunday, India and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, inked a free trade agreement aimed at bolstering investments and exports in key domestic services sectors like IT, audio-visual, and skilled professional mobility.

Union Minister Piyush Goyal, echoing Prime Minister Narendra Modi’s sentiments, highlighted the synergies between the economies of the participating nations, emphasizing the potential for mutual benefit. He emphasized the agreement’s role in fostering fair and equitable trade, while stimulating growth and employment opportunities, particularly for the youth.

India has set ambitious targets, seeking $50 billion in investments over the initial decade post-implementation and an additional $50 billion over the subsequent five years from EFTA member countries. These investments are expected to generate a million direct jobs in India, with duty reductions tied to the commitment.

The agreement, formally termed the Trade and Economic Partnership Agreement (TEPA), spans 14 chapters covering various aspects such as trade in goods, rules of origin, intellectual property rights, services trade, investment promotion, government procurement, and trade facilitation.

The pact’s signing follows approval by the Union Cabinet on March 7, marking a significant milestone in the economic collaboration between India and EFTA. The negotiations, initiated in January 2008, reflect the long-standing efforts to deepen economic ties between the two entities.

Ministers representing EFTA, including Guy Parmelin of Switzerland, Bjarni Benediktsson of Iceland, Dominique Hasler of Liechtenstein, and Jan Christian Vestre of Norway, are expected to attend the signing ceremony, underscoring the importance of the agreement for all parties involved.