On Monday, India and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway and Switzerland, launched a new body. This body will soon facilitate investment worth $100 billion under a trade agreement signed last year, 2024.

India and the EFTA nations have announced the establishment of the EFTA Desk under Invest India, the country’s national investment promotion and facilitation agency. This desk aims to strengthen economic ties by serving as a primary contact point for businesses from the four EFTA countries interested in investing in India. It will also assist in addressing investor concerns and resolving any issues they may face.

The Trade and Economic Partnership Agreement (TEPA), signed between India and the EFTA nations in March 2024, outlines a commitment of $100 billion in investments over 15 years to generate one million jobs. However, the agreement has not yet been enacted due to Switzerland’s prolonged ratification process.

Despite this delay, EFTA has stated that businesses from its member countries are already preparing to explore investment prospects and strengthen their commercial partnerships with Indian firms. More than 100 EFTA-based companies are visiting India this week to assess potential business opportunities even before the trade deal formally comes into force.

According to a statement, “The economic ties between the four EFTA states and India hold immense potential. The EFTA industries excel in areas such as precision engineering, renewable energy, pharmaceuticals, and financial services – sectors that align with India’s growth ambitions and innovation-driven economy”.

The EFTA Desk at Invest India will act as a primary contact centre, offering support for business expansion into new markets while maintaining a detailed database of investment opportunities.

Commerce and Industry Minister Piyush Goyal stated that the $100 billion FDI commitment could potentially trigger investment proposals amounting to $400-500 billion within the Indian ecosystem. “With this 100 billion FDI, I personally believe that we could be catalysing overall investments of maybe USD 400 or USD 500 billion in the Indian ecosystem,” he stated.

Norway’s Deputy Minister of Trade, Tomas Norvoll, described the dedicated EFTA Desk as an "important milestone in our joint efforts in making business and investment easier." Meanwhile, Iceland’s Permanent Secretary of State for Foreign Affairs, Martin Eyjólfsson, emphasised the opportunities across various sectors, including renewable energy and fisheries, as well as the shared responsibility to promote trade and investment.

Switzerland’s State Secretary for Economic Affairs, Helene Budliger Artieda, stated that the EFTA Desk demonstrates that the TEPA is "more than just text and promises." Additionally, Liechtenstein’s Foreign Minister, Dominique Hasler, expressed confidence that her country’s companies would make a high-quality contribution to India’s economic goals by strengthening infrastructure, enhancing manufacturing and driving innovation.

In 2023, India imported goods worth €3.2 billion from EFTA countries, while its exports to the bloc amounted to €2.32 billion during the same period. Over the past five years, India's imports from EFTA nations grew at an average rate of 7.7%, whereas its exports saw an average growth rate of 5.3%.