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Getty imagesIndia has signed a free trade agreement (ALE) with a group of four European countries which are not members of the European Union.
The agreement with the European Free Trade Association (EFTA) will see investments in India $ 100 billion (77.8 billion pounds Sterling), said Minister of the country of the country.
The EFT is made up of Norway, Switzerland, Iceland and Liechtenstein.
The announcement comes as the United Kingdom and India have negotiations on an ALE for two years.
“The times to come will bring more prosperity and mutual growth by strengthening our connections with the nations of the EFTA,” he added.
The agreement comes after almost 16 years of negotiations. As part of this agreement, India will raise most of the import prices on industrial goods of the four countries in exchange for investments over 15 years.
Investments should be made in a range of industries, including pharmaceuticals, machines and manufacturing.
“The agreement improves market access and simplifies customs procedures, which facilitates the expansion of their operations on the respective markets”, ” EFTA said in a press release.
India and the four nations of the EFTA must now ratify the agreement before it can take effect, Switzerland providing for this before next year.
India should hold general elections this year while Mr. Modi is looking for a third term in office.
Over the past two years, India has signed trade agreements with Australia and the United Arab Emirates.
Last week, British Minister of Commerce Kemi Badenoch suggested that it was possible that Great Britain could sign a free trade agreement before India was holding its elections, but said it would be “difficult “.
“I suspect that this will not necessarily be the case because I do not want to use any election as a delay,” she added.
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