Exciting times ahead for India as the four-member European nation bloc EFTA has expressed keen interest in investing in the country. Commerce and Industry Minister Piyush Goyal informed that this is a follow up development to the free trade agreement signed between India and the European Free Trade Association (EFTA) earlier in March. Further, New Delhi has also received an investment commitment of $100 billion over 15 years from the grouping while allowing several products like Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.
The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. The $100 billion commitment is for foreign direct investments and not portfolio investments.
The investments will have to flow in for 15 years with a likely breakup of $50 billion in the first 10 years (counted after implementation of the pact) and another $5 billion in the next five years, the trade deal also provides for a three-year grace period to the EFTA bloc to meet the obligations, according to the agreement documents.
