India signs $100bn free trade deal with four European nations

India has entered a free-trade agreement (FTA) with the European Free Trade Association (EFTA), composed of Norway, Switzerland, Iceland, and Liechtenstein.

This deal, not involving EU members, promises $100 billion in investments for India, as stated by the nation's trade minister.

Prime Minister Narendra Modi highlighted the pact as a significant step toward bolstering the economy and creating job opportunities.

The agreement, which took 16 years to formulate, involves India removing most import tariffs on industrial goods from these nations, reciprocated by investments spanning 15 years in sectors like pharmaceuticals, machinery, and manufacturing.

EFTA noted the deal would improve market access and streamline customs, benefiting businesses in both regions. Before implementation, the agreement requires ratification by India and the EFTA members, with Switzerland aiming for completion by next year.

As India approaches general elections, where Modi seeks a third term, trade has been a focal point, with recent deals also struck with Australia and the UAE. Although the UK is also in FTA talks with India, the UK's trade minister Kemi Badenoch expressed that finalizing a deal before the Indian elections would be "challenging."