India-EFTA trade pact likely to be implemented from September: Goyal

Bern: The free trade agreement (FTA) between India and the four-nation European bloc EFTA is likely to come into force from September, Commerce and Industry Minister Piyush Goyal said on Monday.

The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

"By September, TEPA will be operationalised. It will enter into force by September," Goyal told reporters.

He said the agreement has received approval from the Parliaments of all four countries. In Switzerland, there is an objection period open until July 10. July and August are holiday months here.

He is here for an official visit to meet leaders and businesses to promote trade and investments between India and Switzerland.

Goyal said he held bilateral meetings with over a dozen companies here and most of them are keen to invest in India.

The Swiss firms have shown interest in sectors such as pharma, cybersecurity, and machinery manufacturing, he said.

"Lots of excitement here for India," he said.

On FTAs, he said India is actively negotiating these pacts with countries, including New Zealand, Chile, Peru, Oman, and the European Union (EU).

He indicated that a trade pact with the EU could be concluded "faster than expected".

"Discussions are going on with the EU... we may finalise BIT (bilateral investment treaty) also," Goyal said.

Talking about his bilateral meetings, the minister suggested certain companies to organise board meetings in India so that they can see investment potential in the country.

Huge potential is there to manufacturing machines also in India, he said, adding that 100 per cent foreign direct investment (FDI) in machine manufacturing.

It will help cut import dependence on machine imports from China.

Talking about the 11 years of NDA government, Goyal said India has become a preferred investment destination and FTAs also help in that.

"The world today recognises that the best place to do business is India... India is also a preferred destination for services," he said.

He added that close to 2,000 GCC (global capability centres) have been set up in the country.

Further, he said AC manufacturing in India is getting a big boost from schemes like PLI. It has helped increase localisation in AC making from 20 per cent to about 65 per cent.

These all are possible because of "good governance" of the last 11 years, he said.