On Sunday, in the presence of Union Commerce and Industry Minister Piyush Goyal, India signed a free trade agreement termed as watershed deal. This was with the four-nation of European Free Trade Association (EFTA) in New Delhi. Under this agreement, in the next 15 years, New Delhi has received an investment commitment of $100 billion.
The India-commerce minister, Piyush Goyal, signed the EFTA Trade and Economic Partnership Agreement (TEPA). The agreement would take around a year to come into force.
Prime Minister Narendra Modi hailed the signing of the India-EFTA agreement as a “watershed moment”. He termed it “one of the most pioneering free trade agreements ever done between our countries.” Further, PM said that 10th March 2024 is an “ew turn” and a “watershed moment” for India and the four members of the EFTA – Norway, Iceland, Switzerland, and Liechtenstein.
He read, “The trade agreement symbolizes our shared commitment to open, free, equitable trade, employment for the youth, and growth.” Commerce and Industry Minister Piyush Goyal also described the signed agreement as a “watershed deal”. It is the conclusion of nearly 15 years of hard work and India’s first modern trade pact with a bloc of developed countries.
What Does Watershed Deal Agreement Consist of?
The agreement signed has 14 chapters. It includes trade in goods, intellectual property rights (IPRs), government procurement, trade in services, rules of origin, investment promotion and cooperation, technical barriers to trade and trade facilitation.
The agreement states that the plan is to attract $100 billion in investments over 15 years. India had sought an investment commitment of $50 billion during the first ten years after the implementation of the agreement, according to an official and another $50 billion over the next five years from the bloc members, and through such investments, facilitate the generation of 1 million direct employments in the country.
