The Indian Express (Delhi Edition)
$ 100- bn FDI pledge by EFTA: Goyal to visit Switzerland soon
COMMERCE AND industry minister Piyush Goyal will visit Switzerland to take forward a $ 100 billion investment commitment for India made by the fournation European Free Trade Association ( EFTA) under a bilateral free trade agreement ( FTA).
In the FTA that India signed in March with EFTA - which apart from Switzerland includes Norway, Iceland, Liechtenstein - India secured the investment pledge from EFTA over next 15 years in return for tariff concessions to the members of the grouping.
These investments will come as foreign direct investment ( FDI) and not portfolio investments that should generate 1 million direct jobs, Goyal said at the National Executive Committee meeting of FICCI. “I can withdraw conces
File sions in the FTA if this commitment is not fulfilled.” The fineprint of the FTA document shows that of the $ 100 billion investment, $ 50 billion will flow in the first 10 years and $ 50 billion in another five years. “Excitement that I am finding in Liechtenstein, Norway, Switzerland and Iceland makes me believe that we can actually exceed that if we are more forthcoming about that. They will look for Indian partners and investors,” the minister said.
So far the members of the grouping have collectively invested $ 10.7 billion in India of which $ 9.96 billion has come from Switzerland alone. Bilateral trade between India and EFTA stood at $ 23.9 billion last financial year. India’s exports were up 0.8 per cent to $ 1.9 billion while imports were $ 22 billion up 31.7 per cent. The source of imports from EFTA was Switzerland at $ 21.2 billion last year.
On India- UK FTA the minister said that initial comments made by the UK government are very encouraging. The newly appointed UK Secretary of State for Business and Trade Jonathan Reynolds had met Goyal in February this year during his India visit when he was shadow trade minister. “The Labour government is deeply committed ( to FTA) as is the Modi government,” the minister said. FE