Trade pacts with developed economies to drive jobs, investments: Piyush Goyal

New Delhi: India's strategy of signing free trade agreements (FTAs) with developed economies is aimed at accelerating economic growth, attracting investments, creating jobs and promoting innovation, commerce and industry minister Piyush Goyal said on Thursday.

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

Highlighting the India-European Free Trade Association (Efta) Trade and Economic Partnership Agreement (Tepa), Goyal said Switzerland, Norway, Liechtenstein and Iceland have committed to bring $100 billion in investments into 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 create balance between the interests of both sides," Goyal said, adding that discussions on investments under the pact are actively underway.

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

Goyal said India has signed nine FTAs covering 38 countries over the past three to three-and-a-half years, providing greater market access and opportunities for collaboration in emerging technologies.

Pitching 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 investments in modern infrastructure, including a unified national power grid and expanding renewable energy capacity.

According to Goyal, more than 50% of India's installed electricity capacity now comes from renewable energy sources, strengthening the country's appeal for data centres and technology investments.

The minister also stressed the need to deepen India's innovation ecosystem, saying the government's ₹1 lakh crore research and development fund has started getting operationalized and the first set of projects has already been approved.

Goyal said India remains committed to a rules-based global trading system and will continue to pursue mutually beneficial trade partnerships to support long-term economic growth and employment generation.