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India-EFTA TEPA: $100 Billion FDI Pledge and Investment Desk

11 February 20251 min read
INTERNATIONAL AFFAIRSIndia-EFTA TEPA:$100 Billion FDIPledge andInvestment Desk11 February 2025safalsetu.com

Why in the news

India launched a dedicated desk to help European businesses expand in India, a step toward delivering the investment promised in the trade pact with EFTA.

Key facts

  • Agreement: Trade and Economic Partnership Agreement (TEPA), signed in March of the previous year; it takes effect 4-6 months after all four EFTA parliaments approve.
  • Desk: a single support point for EFTA firms to invest, expand or set up, easing capital flows and regulatory hurdles.
  • Pledge: $100 billion FDI, expected to unlock $400-500 billion of total investment in India.
  • Jobs: 1 million direct in 15 years, with 5-6 million indirect.
  • Industrial space: enclaves in 20 smart cities under NICDC; 100 industrial hubs proposed in the Budget.

Exam angle

  • EFTA: Iceland, Liechtenstein, Norway, Switzerland.
  • Undecided: whether parks go only to firms from selected EFTA countries.

Test yourself

1. Which of these countries is a member of EFTA, which signed a TEPA with India?

EFTA members listed are Iceland, Liechtenstein, Norway and Switzerland.

2. How much FDI has been committed under the India-EFTA TEPA over the stated periods?

$50 billion in 10 years plus $50 billion in the next five makes $100 billion.

3. Under which body are the 20 industrial smart cities offered to EFTA nations developed?

The 20 smart cities fall under the NICDC.

This topic is part of Daily Current Affairs 11 February 2025 (17 topics).

All topics of the dayDay quizFebruary 2025

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