Trade pacts with developed economies to boost jobs, investment: Piyush Goyal

New Delhi: India’s strategy of signing free trade agreements (FTAs) with developed economies is aimed at accelerating economic growth, attracting investment, creating jobs and promoting innovation, Commerce and Industry Minister Piyush Goyal said on Thursday.

Speaking at the 5th annual India Global Innovation Connect in New Delhi, Goyal said agreements with advanced economies provide India with access to capital, technology and new markets while helping domestic companies integrate into global value chains.

Highlighting the India-European Free Trade Association (EFTA) (Tepa) Trade and Economic Partnership Agreement, Goyal said Switzerland, Norway, Liechtenstein and Iceland have pledged to invest $100 billion in India over 15 years and support the creation of 1 million direct jobs.

“The investment commitment formed an integral part of the agreement and helped to balance the interests of both sides,” Goyal said, adding that investment discussions under the pact were actively underway.

The minister said that India’s engagement with developed economies is based on complementarity rather than competition. While countries in Europe, North America and other developed regions face demographic challenges and rising production costs, India offers a young workforce, competitive operating costs and a fast-growing domestic market, he said.

Goyal said India has signed nine free trade agreements covering 38 countries over the past three to three-and-a-half years, providing better market access and opportunities for cooperation in new technologies.

Citing India as an investment destination, the minister said policy reforms, simplified taxation, insolvency and bankruptcy reforms and efforts to reduce regulatory burdens have improved the ease of doing business. He also highlighted the government’s investment in modern infrastructure, including a unified national energy grid and expanding renewable energy capacity.

According to Goyal, more than 50% of India’s installed electricity capacity now comes from renewable energy sources, boosting the country’s attractiveness for data center and technology investment.

The minister also emphasized the need to deepen India’s innovation ecosystem, the government said ₹The research and development fund in the amount of CZK 1,000,000 has started functioning and the first set of projects has already been approved.

Goyal said India remains committed to the rules-based global trading system and will continue to pursue mutually beneficial trade partnerships to promote long-term economic growth and job creation.