India will be signing a trade deal with EFTA on 10 March, which includes four countries: Iceland, Liechtenstein, Norway, and Switzerland. This agreement will provide duty-free access to Indian products in these countries. The products are animal products, fish, processed food, and vegetable oils. EFTA is also guaranteed to invest 100 billion USD in India, eventually creating 10 lakh jobs.
India And EFTA Deal Sign
The signing will occur on Sunday, March 10, 2024, in Bharat Mandapam. The cabinet has already approved the draft agreement, and this is the first talk about India’s ongoing trade.
Experts Predict Negative Impact
Some experts believe this deal will negatively affect India’s agricultural sector and will not lead to significant development. Concerns are raised because private firms can invest based on their criteria and whether the promised jobs and investments will happen as proposed.
Negative Impacts –
- India has a trade deficit with EFTA; they imported more goods than they exported, which led to a deficit worth 14.8 billion USD.
- 98% of India’s exports to Switzerland are industrial, entering the zero tariffs category, affecting India’s benefits from the agreement.
- gold is about 80% of India’s imports from Switzerland; excluding it from the deal might affect the overall deal.
- Difficulties also arise when exporting agricultural goods due to Switzerland’s complex tariffs, quality standards, etc.; EFTA has not shown any interest in changing any of those.
India exported goods worth 1.84 billion USD between April 2023 and January 2024, which included chemicals, pharmaceuticals, etc. At the same time, India imported goods worth 16.7 billion USD, which included precious stones, pearls, etc.
While the deal may hold some benefits, especially in the industrial goods sector, concerns still arise about the agricultural sector, including gold, and implementing the promise of investment and job creation.
