Plan in works to prioritise EFTA investments

New Delhi: India is developing a mechanism to prioritise investments from the members of the European Free Trade Association (EFTA), which includes Switzerland, Norway, Iceland and Liechtenstein, officials said. Norway has expressed keen interest to invest in India's renewable energy sector and Switzerland in the pharmaceutical business.

The EFTA nations have committed to investing $50 billion within 10 years and an additional $50 billion in the five years after that under the India-EFTA free trade agreement.

"We are working on identical mechanisms on both sides to promote investments. We will prioritise their investments," an official said, adding that investment banks and trading bodies will plan more activities to promote investments.


For the foreign direct investment (FDI) to materialise, India's nominal gross domestic product needs to grow around 9.5% in dollar terms over the next 15 years and India can partially withdraw tariff concessions if the investment commitments are not met.

"Shipping and maritime, green energy, IT and engineering are the other sectors of their interest," said the official, adding that the bloc's medium enterprises can explore opportunities in India. The pact was inked in March but its implementation date has not yet been finalised as its ratification is under way.

"Norway and Switzerland are expected to complete the ratification by the first quarter of next year," the official said.

The agreement also provides for creation of one million jobs in India by EFTA countries in next 15 years, for which New Delhi has evolved a services offer as the bloc needs huge skilled manpower.

Last month, the two sides discussed promoting trade and investments, mobility for Indian professionals, re-energising existing institutional mechanisms and the next steps for ratification of the Trade and Economic Partnership Agreement (TEPA).