India inks economic pact with European countries, eases import duties on investment

(MENAFN) In a significant economic development, India has reached an agreement to substantially reduce import duties on industrial products from four European countries—Switzerland, Norway, Iceland, and Liechtenstein. The announcement was made by Commerce Minister Piyush Goel, following the signing of an economic pact on Sunday, marking the conclusion of negotiations that spanned approximately 16 years. This agreement stems from the commitment of the European Free Trade Association (EFTA) countries to invest $100 billion over the course of 15 years in India, a nation characterized by a rapidly growing market and a vast population of 1.4 billion people.

The economic pact represents a milestone achievement for India, particularly in light of recent trade agreements signed with other nations such as Australia and the UAE. Officials have indicated that negotiations with Britain are also nearing completion, aligning with Prime Minister Narendra Modi's ambitious objective of achieving exports worth one trillion dollars by the year 2030.

Under the terms of the agreement, India has committed to reducing or eliminating import duties on a wide range of industrial products from the EFTA countries. In return, these nations have pledged significant investments in India's economy over the specified timeframe. Notably, the Swiss government announced that India will either immediately cancel or partially lift high customs duties on 95.3 percent of industrial imports from Switzerland, with the exception of gold. Similarly, Norwegian Industry Minister Jan Christian Vestre highlighted the elimination of import taxes on nearly all Norwegian goods exported to India, which previously faced tariffs as high as 40 percent.

This economic agreement underscores the mutually beneficial nature of international trade relationships, with India leveraging its growing market potential to attract foreign investment while simultaneously opening its doors to imported goods from partner nations. The reduction of import duties is expected to facilitate greater trade flows between India and the EFTA countries, fostering economic growth and cooperation. As India continues to pursue its ambitious economic goals, such agreements serve as critical instruments for expanding its global trade footprint and stimulating domestic development.

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