Commerce Minister Piyush Goyal is presently on a five-day visit to London, Oslo, and Brussels from April 28 as India looks to quicken trade deals with key nations amid global turmoil.
Goyal's visit assumes significance given that when New Delhi is looking to fast-track the process of inking trade deals with the likes of United Kingdom and European Union, while also ensuring a speedy implementation to the pact signed with the European Free Trade Association or EFTA back in March 2024.
Currently in London for two days, Goyal in his first engagement, held a meeting with the UK Secretary of State for Business and Trade Jonathan Reynolds to advance Free Trade Agreement (FTA) negotiations.
India and UK are looking to conclude talks for the proposed FTA sooner as international trade is expected to to face challenges on steeper tariffs from the US.
Reportedly, talks for the FTA between India and UK are nearing conclusion after negotiations began in January 2022. There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.
Back in February this year, India and UK decided to restart negotiations for the FTA almost a year after talks stalled in May 2024 ahead of UK's general elections.
Goyal's visit to Brussels is key as India and EU plans to close talks for the proposed trade deal by the end of 2025.
India and the EU are looking at an an interim or early harvest trade agreement before a larger pact in a bid to quickly close talks between them, Commerce Secretary Sunil Barthwal had said on April 15.
An early harvest deal is a trade agreement between countries or regions that allows for removal of trade barriers of certain goods or services, while leaving other items to be liberalised at a later date.
India has followed the practice of negotiating trade pact in tranches with the likes of Australia and is also currently in talks to finalise the first tranche of the same with US.
The 11th round of negotiations for the proposed FTA between India and EU is scheduled between 12-16 May, 2025 in New Delhi.
While, in Oslo, Piyush Goyal is expected to give a push to ensure that the trade deal between India and EFTA nations is implemented by the current calendar year.
The Trade and Economic Partnership Agreement (TEPA) between India and EFTA, which includes Iceland, Liechtenstein, Norway, and Switzerland, is likely to be operationalised in the later part of the year, Commerce Minister Piyush Goyal had said on February 10.
While, the trade and investment deal between India and EFTA nations was inked on March 10, 2024, it is yet to be implemented given lengthy ratification processes.
For instance, for a trade agreement to kick in, Switzerland typically takes the referendum route before green lighting any pact from their end.
A referendum is a vote in which the people of a nation are asked to either accept or reject a particular proposal.
Apart from that, Liechtenstein and Norway's Parliaments too have to ratify the trade deal before it can be operationalised, a process which is currently underway.
Goyal can also focus on encouraging more investments into India from EFTA nations, which is part of the trade deal between them.
As part of the trade and investment deal, EFTA countries will aim to increase foreign direct investment from investors of these nations into India by $50 billion within 10 years from the time the agreement comes into force, and an additional $50 billion in the next five years.
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