India is strengthening its global economic presence through strategic Free Trade Agreements (FTAs) with developed economies, aimed at accelerating economic growth, attracting investments, fostering innovation, and creating employment opportunities. Speaking at the 5th Annual Meeting of India Global Innovation Connect in New Delhi, Union Commerce and Industry Minister Mr. Piyush Goyal highlighted the important role of FTAs in supporting India’s long-term development goals and expanding its participation in global value chains.
The government views these trade partnerships as a key pillar of India’s economic transformation strategy, enabling businesses to access new markets, advanced technologies, and international investment opportunities.
EFTA Agreement to Attract Major Investments
A significant milestone in India’s trade strategy is the Trade and Economic Partnership Agreement (TEPA) signed with the European Free Trade Association (EFTA), which includes Switzerland, Norway, Liechtenstein, and Iceland.
Under the agreement, EFTA member countries have committed investments worth approximately US$100 billion (₹9.26 lakh crore) in India over the next 15 years. The partnership is also expected to support the creation of one million direct jobs, providing a major boost to India’s manufacturing, services, and technology sectors.
Trade Partnerships Strengthen Innovation and Competitiveness
India’s engagement with developed economies goes beyond trade and investment. These partnerships are designed to encourage innovation, technology transfer, skill development, and quality enhancement across industries.
By combining India’s skilled workforce, competitive manufacturing capabilities, and large consumer market with global expertise and capital, FTAs are expected to improve productivity and strengthen India’s competitiveness in international markets.
Expanding Global Market Access Through FTAs
Over the past three to four years, India has successfully concluded nine Free Trade Agreements covering 38 countries. These agreements have opened access to new export markets while providing Indian businesses opportunities to participate more effectively in global supply chains.
The government continues to focus on improving ease of doing business, simplifying taxation systems, and creating a stable investment environment to maximize the benefits of these trade agreements.
Infrastructure and Innovation Support Economic Transformation
India’s infrastructure transformation is further enhancing its attractiveness as a global investment destination. The country’s expanding logistics network, growing renewable energy capacity, and unified national power grid of over 500 GW are supporting manufacturing growth and attracting investments in sectors such as data centres and advanced technologies.
To accelerate innovation-led growth, the government has operationalized a ₹1 lakh crore (US$10.83 billion) Research and Development Innovation Fund, with the first projects already approved.
Key Highlights:
- India has signed nine FTAs covering 38 countries in recent years.
- EFTA nations have committed US$100 billion in investments
- The agreement is expected to create one million direct jobs.
- FTAs support innovation, technology transfer, and quality improvement.
- India's infrastructure development is attracting global investors.
- A ₹1 lakh crore innovation fund has commenced operations.
- Trade agreements are strengthening India's participation in global value chains.
- Improved ease of doing business continues to support investment growth.
