The Trade and Economic Partnership Agreement (TEPA) is among three free-trade agreements (FTAs) India is pushing to finalise this month, before the Model Code of Conduct, that bars major policy announcements after the release of general election dates, kicks in.
The two other deals are with Oman and the UK.
While the Oman deal is in advanced stages with legal scrutiny underway, the much anticipated India-UK FTA is also being taken up at the highest level, with the Prime Minister’s Office (PMO) reviewing the deal late last month. According to a PTI report, UK Secretary of State for Business and Trade Kemi Badenoch has said that an India-UK FTA “is possible” before the Indian elections, but that the UK does not want to use that as a “deadline”.
Other trade deals — the comprehensive agreement with Australia and the FTA with the 27-member European Union (EU) — are also being negotiated but are expected to be concluded only after the general election. Both deals involve the agriculture sector, a sensitive subject for India especially amid the farmers’ unrest.
The Indian Express had reported last week that India and EFTA are nearing a conclusion of the deal which would see the European bloc committing an investment of $100 billion in India over 15 years in sectors including pharma, food processing, engineering and chemicals.
The investment commitment, the first of its kind in an FTA, would largely come from provident funds in EFTA countries. These include Norway’s $1.6-trillion sovereign wealth fund, the world’s largest pension fund which posted a record profit of $213 billion in 2023 on the back of strong technology stock returns.
The Indian Express Pvt Ltd
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