India’s EFTA pact is wide-ranging and therefore all the more welcome
Amid all the worry, there’s some positive news for India on the trade front. India’s deal with the European Free Trade Association (EFTA), which counts Iceland, Liechtenstein, Norway and Switzerland as members, has come into effect from 1 October.
Beyond some give-and-take on goods and services, it brings with it a commitment by EFTA countries to invest $100 billion in India over a decade-and-a-half. Meanwhile, trade barriers get lowered, with India not only getting easier market access, but also an opportunity to use this four-nation bloc as a base for trade with the EU.
As for imports, we could find Swiss watches, chocolates and other products available at more attractive prices in India as our duties on these are gradually reduced.
The highlight of this deal is the wider economic partnership it forges, rather than its trade provisions. It exemplifies an approach under which we stand to make gains over the long haul.
EFTA investments in specialized fields could enhance Indian know-how, for example. As New Delhi looks to forge ties with other countries and blocs, we mustn’t underestimate the role of engagements that offer more than instant market access.
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