India has agreed to reduce import tariffs on industrial products from four European countries in exchange for a $100 billion investment over a period of 15 years, announced the country’s trade minister. This agreement comes after nearly 16 years of negotiations and builds on previous trade deals with Australia and the UAE. Additionally, talks with Britain for a similar deal are nearing completion as Prime Minister Narendra Modi targets annual exports of $1 trillion by 2030.
Under this new pact, the European Free Trade Association, which includes Switzerland, Norway, Iceland, and Liechtenstein, will invest $100 billion in India’s rapidly growing market of 1.4 billion people. In return, India will gradually eliminate high customs duties on 95.3% of industrial imports from Switzerland, with the exception of gold, according to a statement from the Swiss government.
Norwegian companies currently face significant import taxes of up to 40% on certain goods exported to India. However, with this new agreement, Norway has secured zero import taxes on almost all of its goods entering the Indian market, noted Industry Minister Jan Christian Vestre in a separate statement.
In addition to trade provisions, the pact includes modern elements such as intellectual property rights and gender equality, making it a fair and mutually beneficial trade agreement for all five countries involved, emphasized Trade Minister Piyush Goyal during a press conference.
