New Delhi, Feb 3 (PTI): In a significant push to strengthen trade and investment ties, over 300 investors from the European Free Trade Association (EFTA) member nations and Israel are set to visit India next week, Commerce and Industry Minister Piyush Goyal announced.
The high-profile delegation, which includes more than 100 investors from Iceland, Liechtenstein, Norway, and Switzerland—the four-nation EFTA bloc—and over 200 investors from Israel, will arrive in India for a three-day visit beginning February 10. The investors will explore business opportunities in India, particularly in technology and manufacturing sectors.
Strategic Importance of EFTA Visit
This visit gains significance following the signing of the Trade and Economic Partnership Agreement (TEPA) between India and EFTA on March 10, 2024. Under this landmark agreement, EFTA members have committed to investing USD 100 billion in India over the next 15 years, facilitating the creation of 1 million direct jobs.The agreement also offers India preferential access to EFTA’s markets, allowing reduced or zero-duty imports of Swiss watches, chocolates, and cut and polished diamonds, among other products. TEPA is expected to come into effect by the end of 2024.
"This is a first-of-its-kind investment commitment in any trade deal signed by India so far," Goyal emphasized.
Trade and Investment Dynamics
The India-EFTA trade relationship has been growing steadily, with two-way trade reaching USD 24 billion in 2023-24, up from USD 18.65 billion in 2022-23. Switzerland remains India’s largest trading partner and top investor within the bloc, followed by Norway. Between April 2000 and September 2024, India received USD 10.72 billion in foreign direct investment (FDI) from Switzerland.EFTA, an intergovernmental trade organization, was formed as an alternative to the European Union (EU) for countries that preferred not to join the EU framework. Separately, India is negotiating a comprehensive free trade agreement with the EU, a 27-nation bloc.
India-Israel Trade Relations
While India-Israel trade stood at USD 6.53 billion in 2023-24, down from USD 10.77 billion in 2022-23, Israel remains a key economic partner. Between April 2000 and September 2024, India received USD 326.75 million in FDI from Israel.The upcoming visit by Israeli investors underscores the growing interest in technology collaborations and manufacturing ventures between the two nations.
With India actively expanding its trade network and investment inflows, these high-level engagements with EFTA and Israel are expected to bolster economic ties, drive industrial growth, and create employment opportunities in the country.