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

Story Highlights
  • $100bn Free Trade deal with four(4) European nations
  • India to lift most import tariffs on industrial goods from the four countries including UK

The deal with the European Free Trade Association (EFTA) will see investments in India of $100bn (£77.8bn), the country’s trade minister says.

The announcement comes as the UK and India have been holding negotiations over an FTA for the last two years.

“The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations,” he added.

The agreement comes after almost 16 years of negotiations. Under this deal, India will lift most import tariffs on industrial goods from the four countries in return for investments over 15 years.

The investments are expected to be made across a range of industries, including pharmaceuticals, machinery and manufacturing.

India and the four EFTA nations now need to ratify the agreement before it can take effect, with Switzerland planning to do so by next year.

India is due to hold general elections this year as Mr Modi seeks a record third term in office.

In the last two years, India has signed trade deals with Australia and the United Arab Emirates.

Last week, the UK’s trade minister Kemi Badenoch suggested that it was possible that Britain could sign a free trade deal before India held its elections but said it would be “challenging” .

“I suspect that that is not necessarily going to be the case because I don’t want to use any election as a deadline,” she added.

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