Trade Minister Piyush Goyal met with his Swiss counterpart Federal Councillor Guy Parmelin during his recent visit to Switzerland. The two discussed ways to identify and realise the ambitious target of $100-billion in investments and creation of one million jobs in India by European Free Trade Association (EFTA) countries in the next 15 years in line with the trade deal between them.
The key objective of Goyal's visit to Switzerland, which commenced July 14, was to discuss the next steps for the implementation of the Economic Partnership Agreement (TEPA), signed between India and EFTA nations.
"During the bilateral talks with Parmelin, both sides acknowledged that TEPA provides an excellent framework for deepening of trade and investment partnership. A focused approach to creating an enabling environment would expedite realising the goals set under TEPA," an official statement released on July 16 read.
The Union government signed the TEPA with EFTA nations on March 10. The EFTA countries include Iceland, Liechtenstein, Norway, and Switzerland.
Goyal and Parmelin also held discussions with prominent Swiss and Indian heads of industry over a breakfast meeting held on July 15. At the meeting, Goyal encouraged Swiss companies to become part of India’s growth story and invest in its growing market.
He also met with the chief executive officers of Swiss companies with business and investment interests in India, the release stated.
As per the trade pact inked between the two sides, the EFTA states will aim to increase foreign direct investment from investors of these nations into India by $50 billion within 10 years from the entry into force of this agreement and an additional $50 billion over the next five years.
The EFTA states will also look to facilitate the generation of one million jobs within 15 years in India from the time the agreement comes into force, which would be a consequence of the commitment on foreign direct investment inflows.
To be sure, the investments from EFTA nations are expected to flow in from private firms and the commitment is not a governmental guarantee but rather a governmental initiative to nudge businesses towards investing in India.
Notably, as per the trade deal, the investment promised by EFTA states will hinge on India maintaining a nominal GDP growth rate of around 9.5 percent in US dollar terms in the next 15 years, which is in line with the South Asian nation's past growth rates.
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