India’s big agreement with Europe
India is now going to open a new way of trade towards Europe. From October 1, a trade agreement between a small but rich group EFTA of European countries is going to be implemented. On this occasion, the Government of India will hold a big program in Delhi’s Bharat Mandapam which will include Union Minister Piyush Goyal and big leaders of EFTA countries. The government says that this will not be just a ritual event, but its aim is to give complete information about this agreement to the trade and industry so that they can take advantage of it.
Who is Efta?
EFTA means European Free Trade Association. It has four countries, SwitzerlandNorway, Iceland and Liechtenstein. India along with these countries signed a trade agreement in March this year, which was called TEPA. Now that all countries have been approved, this agreement will be applicable from October 1.
Under this agreement, India and EFTA countries will be able to trade with each other less tax or without tax. That is, many goods from these countries will now be able to come to India cheaper and India’s products can be sold there without tax.
Employment opportunity will be available with investment
The most important thing about this agreement is that EFTA countries will not only trade, but will also invest a total of $ 100 billion in India in the next 15 years. In the first 10 years, $ 50 billion and then in the next 5 years 50 billion dollars and in the next 5 years. The government hopes that at least 1 crore new jobs will be born in India. This is the first time that India has added the condition of direct investment directly to a trade agreement.
What will be the benefit of India?
EFTA countries do not impose much tax on goods coming from outside anyway, so it was already a little easier to sell goods to India’s exporters there. Now when India will get tax free access on about 99% of goods there, then there will be more benefit. On the other hand, India has removed tax on 80 to 85% of goods coming from EFTA countries. However, farmers and dairy products have been excluded from this deal, so that domestic farming and milk industry are not affected.
Most trade with Switzerland
Switzerland is India’s largest business partner among the four countries of EFTA. Last year, India sent goods worth about $ 2 billion to EFTA countries, out of which three fourths went to Switzerland. At the same time, India bought goods worth more than $ 22 billion from these countries, out of which $ 21.8 billion came only from Switzerland. This means that India is making a big loss in trade with these countries. But now the government hopes that through this agreement, there will be a balance in business and new industries will be set up.