• By Mayukh Debnath
  • Sun, 10 Mar 2024 11:37 PM (IST)
  • Source:JND
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India-EFTA Free Trade Pact: India signed a free trade agreement with the European Free Trade Association (EFTA) on Sunday, with Prime Minister Narendra Modi calling it a "landmark pact", which he said will create employment opportunities for the youth of the nation. The EFTA is a multilateral trade organisation and free trade area consisting of Iceland, Liechtenstein, Norway and Switzerland. 

As part of the pact, called the 'Trade and Economic Partnership Agreement (TEPA)', EFTA has committed to promote investments with the aim to increase the stock of foreign direct investments by USD 100 billion in India in the next 15 years, the Centre informed. The four-nation bloc has also commited to facilitating the generation of 10 lakh direct jobs in India during the said period, it added.

"For the first ever time in the history of FTAs, a legal commitment is being made about promoting target-oriented investment and creation of jobs," the government said in a press release. "EFTA is offering 92.2% of its tariff lines which covers 99.6% of India’s exports. The EFTA’s market access offer covers 100% of non-agri products and tariff concession on Processed Agricultural Products (PAP)," the communique added.

Expressing delight over the signing of the free trade agreement, PM Modi said in a post on X (formerly Twitter): "Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations."

Notably, India had been working on TEPA with EFTA countries for several years. In an official statement, PM Modi said that the "innovative and well-balanced" trade deal reflects the respective developmental aspirations of both parties and symbolizes their shared commitment to open, fair, equitable trade.

"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," he added.

(With inputs from ANI)