India-EFTA FTA to take effect from October 1

India’s Free Trade Agreement (FTA) with the European Free Trade Association (EFTA) will come into effect from October 1, Union Minister of Commerce and Industry Piyush Goyal announced on Monday.

The EFTA deal, finalised in March 2024, includes Switzerland, Liechtenstein, Norway, and Iceland. “From the first of next month, a group of four countries Switzerland, Liechtenstein, Norway, and Iceland will also come into effect,” Goyal said while addressing the valedictory session of the UP International Trade Show.

The Union Minister noted that India is negotiating trade agreements with 27 countries, including the United States, the European Union, and Peru. He added that the terms of reference for a pact with Eurasia have already been finalised. India has previously signed agreements with the UAE, Australia, and the United Kingdom.

Goyal highlighted India’s economic progress since 2014, reporting that foreign exchange reserves now stand at USD 700 billion, nearly three times higher than in 2014. He projected that India will become a USD 5 trillion economy within the next two years, making it the world’s third-largest economy.

He further stated that India’s GDP grew by 7.8 per cent in the last quarter, while inflation recently declined to 2 per cent, the lowest since independence. Goyal said the banking sector is strong, lending capacity has improved, and interest rates have decreased significantly.

Reflecting on reforms since 2014, Goyal observed that India, once among the world’s “Fragile Five” economies, has achieved substantial economic transformation through transparency and regulatory reforms. He cited the transparent auctioning of government resources such as 2G spectrum, coal, and iron ore mines.

He also highlighted Uttar Pradesh’s economic development over the past eight years, describing the state as on a “fast-paced runway of growth.” Goyal concluded by noting that recent tax reforms under the GST Bachhat Utsav have made daily essentials more affordable, describing them as a “gift from Prime Minister Modi during Navratri.