In a significant move towards opening up its trade borders, India has recently signed free trade agreements with the four non-EU member nations of the European Free Trade Association (EFTA) — Norway, Switzerland, Iceland, and Liechtenstein. This move signals India’s willingness to expand its global trade relationships and attract foreign investments.
As part of the agreement, these four countries have committed to investing a substantial $100 billion in India over the next 15 years, highlighting the growing economic ties between India and the EFTA nations. Additionally, negotiations are ongoing with other key partners such as Australia, the UK, Israel, and Oman, showcasing India’s efforts to capitalise on its status as the fastest-growing major economy in the world.
The shift towards multilateral trade agreements marks a departure from India’s previous self-reliant approach, aiming to position the country as a beneficiary of the ‘China plus one’ strategy embraced by global companies. To unlock its full potential as a global manufacturing hub, India must streamline import tariffs, enhance ease of doing business, and integrate seamlessly into global supply chains.
Furthermore, India’s commitment to adopting international norms in areas like labour rights, sustainability, and gender equality underscores its readiness to align with global standards. Embracing renewable energy sources, promoting green technologies, and ensuring fair labour practices are crucial steps towards fostering sustainable economic growth and creating a conducive environment for businesses to thrive.
The potential benefits of these trade agreements extend across various industries, including textiles, marine products, automotive components, chemicals, and jewellery sectors. By leveraging its position in global supply chains, India aims to create 80 million new jobs by 2030, boost consumption expenditure, stimulate demand for consumer goods, and drive investment in key sectors crucial for economic development.
Through strategic trade alliances and proactive economic policies, India is poised to chart a new trajectory towards sustainable growth, job creation, and enhanced competitiveness in the global market. Embracing a more interconnected and progressive approach to trade, India stands to strengthen its position as a dynamic player in the international trade arena, paving the way for a prosperous and resilient economy in the years to come.
