China’s gamble
China’s economy, once lauded for its rapid growth, now faces a critical juncture as it struggles to maintain momentum.
Union Minister for Commerce and Industry Piyush Goyal will visit Switzerland on July 14 to hold talks around $100-billion investment promise.
The promise was made to India as part of the trade deal with the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland.
“I am off to Switzerland on Sunday to take forward the EFTA commitment of $100 billion in FDI investment and thereby a million jobs due to that investment,” Minister Goyal said, adding that India could get more than the committed amount, if the country is more forthcoming.
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“They (EFTA nations) will look for Indian partners, Indian markets, Indian investors,” he added.
“Sunday’s agenda will involve industry interaction…to see what we can do to kickstart investments. Because $100 billion can’t happen overnight,” Goyal said at an industry event organised by FICCI.
On partnership with the United Kingdom (UK), the minister said that India and the UK are ‘deeply committed’ to signing a free trade agreement.
“The initial comments being made by the UK government are encouraging…the Labour Party is deeply committed and so is the Modi government,” he told reporters.
On March 10, the Indian government signed a Trade and Economic Partnership Agreement (TEPA) with EFTA nations that weaved in a commitment to facilitate through private companies’ foreign direct investment in India in the next 15 years.
As per the trade pact, the EFTA states will aim to increase foreign direct investment from investors of these nations into India by $50 billion within 10 years from the entry into force of this agreement and an additional $50 billion in the next five years.
It is expected that the investments from EFTA nations will to flow in from private firms and the commitment is not a governmental guarantee but rather a governmental initiative to nudge businesses towards investing in India.
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