India finalized a $100 billion trade agreement with Norway, Switzerland, and Liechtenstein on March 10, 2024. The pact seeks to eliminate tariffs on industrial goods from these countries and safeguard their investments over the next 15 years. The accord is poised to advance India’s economic ties with Europe and is set to reverberate in the upcoming elections.
The deal is expected to boost India’s GDP, create jobs, and attract foreign direct investments. Its economic impact makes it a heated topic among political parties prepping for the imminent elections.
Indian Prime Minister, Narendra Modi, hailed the milestone as a signifier of a “shared commitment to open, fair, and equitable trade.” The Indian Premier extolled in the glorious outcome of the agreement which could generate a potent global trade system, further pivotal to India’s rising eminence in international trade.
Despite wrapping up the accord, all parties must give it the green light for it to be activated, which should transpire by 2025. India will diminish most import tariffs on industrial goods from these countries, laying the basis for future investments.
Indian Trade Minister, Piyush Goyal, lauded the pact as a paradigm of a “modern trade agreement, fair, equitable, and win-win for all four countries.” He emphasized on the potential of such accords in dealing with global trade challenges and underlined the importance of mutual respect and cooperation in ensuring sustainable economic progress.
As per the agreement, India will almost nullify customs duties on 95.3% of industrial imports from Switzerland in due course. Likewise, import tariffs on most Norwegian items reaching India will hit nearly zero. The treaty also mentions the tariff abolition on industrial goods, automobiles, chemicals, and machinery from Switzerland and Norway, which will cut costs and foster stronger trade relations.
Prime Minister Modi showcases this deal as a testament of India’s economic advancement ahead of the general election in May. His goal is to see annual exports swell to $1 trillion by 2030, confirming his economic vision with significant trade agreements with countries like Australia and the United Arab Emirates.
