India signs $100 billion trade agreement with European countries outside the EU

European Free Trade Association (EFTA) countries and the Government of India 10 March signed agreement on trade and economic cooperation. EFTA includes European countries that are not members of the EU: Switzerland, Norway, Iceland and Liechtenstein. The agreement is designed for 15 years and implies simplification of the investment and trade regime between India and the EFTA countries. Indian authorities notethat the new agreement will allow achieving trade turnover and mutual investments totaling $100 billion.

India may soon sign a free trade agreement with another non-EU European country—the United Kingdom, which left the bloc at the beginning of 2020. Last week, UK Trade and Business Secretary Kemi Badenoch reportedthat the signing of such an agreement could happen before the general elections in India, which will take place in April-May.

According to unofficial information, the UK wants India to reduce import duties on a number of British goods such as cars, food and alcohol, which can now reach 150%. In turn, India wants to simplify visa and tax regimes for Indians working in the UK.

Read about how the government of Indian Prime Minister Narendra Modi determines foreign policy priorities ahead of the elections in the Kommersant article. “India on its own”.

Evgeny Khvostik