Partners in Prosperity
Context:
- In New Delhi, high-ranking representatives from four EFTA countries met with Indian officials.
Introduction:
- The likelihood of starting trade and economic partnership agreement (TEPA) negotiations has improved as a result of a meeting between Indian officials and representatives from the European Free Trade Association.
What exactly is EFTA (European Free Trade Association)?
- In order to promote free trade and economic integration for the benefit of its four Member States—Iceland, Liechtenstein, Norway, and Switzerland—as well as their international trading partners, the European Free Trade Association (EFTA) was established as an intergovernmental organisation.
- The Stockholm Convention established EFTA in 1960. The relationship with the European Union (EU) has always been at the centre of EFTA activity.
What makes EFTA so important?
- The EFTA states may be small, with a combined population of just over 14 million, but their economies are robust.
- The EFTA is the 10th largest service trader in the world in 2021, with import and export of goods and services close to $1.3 trillion.
- In terms of innovation, competitiveness, per capita wealth generation, life expectancy, and quality of life, these four countries are among the highest in the world.
- Pharmaceutical, biotechnology, machinery manufacturing, R&D-driven technologies, marine technology, energy-related services, financial services, banking, and insurance are all fields in which EFTA enterprises are world leaders.
- EFTA has a history of successfully negotiating trade agreements that benefit all parties involved. To date, this record includes a vast network of 29 FTAs with 40 partner nations.
How does EFTA apply to India?
- The EFTA nations are collaborators in India’s development. They have made a big contribution by investing over $35 billion in India.
- These investments cover a wide range of industries, including metals, banking, insurance, pharmaceuticals, electrical engineering, and machinery.
- By boosting trade and investment, EFTA nations can support India’s impressive economic growth and its position as a leader in the creation of green technologies.
- In terms of skilled labour, there is a win-win partnership between India and the EFTA. The highly skilled Indian workforce benefits the EFTA countries, particularly in the services industry.
- By 2030, India wants to use renewable sources of energy for 50% of its energy demands. As a result, EFTA countries may support India’s goals for green growth.
Conclusion:
- A Trade and Economic Partnership Agreement (TEPA) between India and EFTA nations has substantial potential advantages. The agreement will promote a strong cooperation that shares ideals including advancing gender equality and environmental development. All parties will benefit from the agreement, and this is a requirement.
