India-Europe Free Trade Agreement Sparks Economic Optimism

India's recent Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) has come into effect, marking a significant step in strengthening economic ties with Europe. Aimed at enhancing commerce and investments, the agreement includes Iceland, Liechtenstein, Norway, and Switzerland as its core members.

The FTA is expected to bring substantial benefits to India, notably a commitment of $100 billion in investments over the next 15 years, leading to the potential creation of one million jobs. Key sectors poised for growth include machinery, organic chemicals, textiles, and processed foods, as the agreement offers attractive duty concessions to Indian exporters.

In return, Indian consumers may enjoy Swiss wines, watches, and chocolates at competitive prices due to lower import tariffs. The pact also includes provisions for India to revert certain concessions if investment commitments are not met, ensuring economic interests are safeguarded.

(With inputs from agencies.)