Piyush Goyal Urges Industry to Leverage $100B India–EFTA Trade Pact

“This type of provision has not been seen in earlier global trade agreements,” Shri Goyal said.

Union Minister of Commerce and Industry Shri Piyush Goyal has urged Indian industry leaders to actively leverage the opportunities created under the India–EFTA Trade and Economic Partnership Agreement (TEPA), highlighting the $100 billion legally binding foreign direct investment (FDI) commitment from EFTA nations and the potential to create one million jobs in India.

Addressing the Commemorative Session marking two years of the signing of the India–EFTA TEPA, organised by ASSOCHAM via video conference in New Delhi, the Minister described the agreement as a major milestone in India’s growing economic engagement with Europe.

Landmark Investment Commitment in Global Trade

Shri Goyal emphasised that the agreement with the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland and Liechtenstein—includes a $100 billion investment commitment, an unprecedented feature in global trade agreements.

He noted that this commitment is not merely an announcement or memorandum but a legally binding provision under the agreement, marking a first in the history of global trade negotiations.

The investment pledge is also linked to the creation of one million jobs in India, he said.

The Minister added that the agreement contains a unique safeguard clause, allowing India to reclaim the benefits extended under the FTA if the investment commitments are not fulfilled.

“This type of provision has not been seen in earlier global trade agreements,” Shri Goyal said.

India Deepens Economic Engagement with Europe

The Minister highlighted that the India–EFTA agreement marked the beginning of deeper economic integration between India and Europe.

Following the EFTA deal, India also concluded trade agreements with the United Kingdom and the European Union, significantly expanding its global trade network.

He noted that the India–EU trade agreement was described by European Commission President Ursula von der Leyen as the “mother of all deals.”

India–UK Trade Deal Moving Toward Ratification

Shri Goyal also pointed to rapid progress in the ratification of the India–UK Free Trade Agreement, expressing confidence that it could become one of the fastest trade agreements approved by the UK Parliament.

The agreement was signed on 24 July during Prime Minister Narendra Modi’s visit to Chequers in the United Kingdom, he said.

Early Investment Signs Emerging

Highlighting initial outcomes of the EFTA agreement, the Minister noted that Iceland has already invested $30 million in the fisheries sector in Maharashtra.

He described this as an encouraging early step.

“The flood begins with a drizzle,” he said, expressing confidence that such investments will expand into much larger inflows in the coming years.

Nearly 100% Market Access Across EFTA Nations

The Minister said the agreement provides near-total market access across the four EFTA countries and opens up major opportunities across sectors including:

• Trade in goods

• Services exports

• Technology partnerships

• Innovation and research collaboration

He encouraged Indian businesses, particularly from the services sector, to capitalise on these opportunities.

Sensitive Sectors Protected

Shri Goyal reiterated that while negotiating trade agreements, the government has carefully protected India’s sensitive sectors.

He assured stakeholders that agriculture, dairy, fisheries, MSMEs and other vulnerable sectors have been safeguarded.

He also clarified that genetically modified (GM) products have not been granted concessions or market access under the agreement.

Industry Asked to Drive “Deal to Delivery”

The Minister called on industry associations to help translate the trade agreement into tangible economic outcomes.

“Trade agreements become meaningful only when they translate into investments, trade flows and technology partnerships,” he said.

He urged ASSOCHAM to take the benefits of the agreement to grassroots businesses across India, including:

• Women entrepreneurs

• Farmers and food processing units

• Seafood exporters

• MSMEs

• Youth entrepreneurs

Opportunities for Professionals and Service Providers

Shri Goyal also highlighted new opportunities for Indian professionals and service providers under the agreement.

Sectors expected to benefit include:

• Information technology and business services

• Architecture and engineering

• Chartered accountancy and financial services

• Healthcare professionals such as nurses

• Audiovisual, education and cultural services

FTA Facilitation Desk Established

To help businesses explore opportunities under India’s trade agreements, the government has established a dedicated FTA desk in West India.

The desk will assist companies in connecting with businesses in FTA partner countries and identifying collaboration opportunities.

Trade Agreements Key to India’s Growth

Concluding his remarks, Shri Goyal said that despite global geopolitical uncertainties and conflicts, India remains confident about expanding its global economic partnerships.

He expressed confidence that Indian businesses will achieve significant growth by leveraging the opportunities created through India’s new generation trade agreements.