By signing new trade agreements, India and European nations have formalised their commitment to promoting investments, particularly in the defence and security sectors, European ambassadors said about India’s deals with the European Union (EU) and the European Free Trade Association (Efta).
With trade deals, India and European nations have formalised their commitment to promoting investments, particularly in the defence and security sectors, European ambassadors said about India’s agreements with the European Union (EU) and the European Free Trade Association (Efta).
At a session at the News18 Rising Bharat Summit, Norwegian Ambassador May-Elin Stener said the India-EU Free Trade Agreement (FTA) was complementary to the one India signed with the European Free Trade Association (Efta) — an economic grouping of Switzerland, Norway, Iceland, and Liechtenstein.
As 66 per cent of Norway’s exports go to the EU, and with India and the EU now having signed a free trade agreement, there now exists one large trading and investment bloc comprising India, the EU, and Efta, Stener said.
India and Efta signed the Trade and Economic Partnership Agreement (Tepa) in 2024, which came into effect the next year. The Tepa led to India liberalising 98 per cent of Efta imports and Efta removing duties on 99 per cent of Indian goods. It also included Efta committing to invest $100 billion in India over 15 years, aimed at creating 1 million jobs, particularly in manufacturing pharmaceuticals and green tech.
The India-Efta trade deal was followed by the India–EU FTA, which both sides have described as the “mother of all deals”. Under the FTA, at least 90 per cent of goods would lose duties in what has been described as a win-win agreement. Analysts have noted that, as India and Europe largely export goods that the other does not produce, increased trade due to the FTA is likely to complement domestic industries instead of competing with them.
There are around 1,800 German companies that are interested in exploring and expanding business opportunities in India, and, once the India–EU FTA is ratified, we expect German foreign direct investment in India to surge, German Ambassador Philipp Ackermann said.
German companies are particularly interested in expanding defence and security partnerships with India, Ackermann said.
Swedish Ambassador Jan Thesleff noted that while they are glad intellectual property (IP) has been included in the trade deal, there are still aspects that need to be addressed to smooth investment flows and improve the ease of doing business.
Different Indian states still have different policies on trade and business, and this can complicate investments, Thesleff said when asked about areas where India has room for improvement to attract more investment.
Thesleff further said that Sweden is particularly interested in exploring opportunities in India in green tech and decarbonisation sectors.
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