India is set to ease import tariffs on industrial products from four European countries, marking a milestone in trade relations after nearly 16 years of negotiations. Trade Minister Piyush Goyal announced the development following an economic pact signed on Sunday. This agreement with the European Free Trade Association, comprising Switzerland, Norway, Iceland, and Liechtenstein, entails a commitment of $100 billion in investments over 15 years into India's burgeoning market of 1.4 billion people.

In exchange, India will progressively remove or reduce high customs duties on 95.3% of industrial imports from Switzerland, excluding gold, according to a statement from the Swiss government. Industry Minister Jan Christian Vestre highlighted the significance for Norwegian companies, which face steep import taxes of up to 40% on certain goods, noting that the deal secures nil import taxes on nearly every Norwegian product.

The pact, described as modern and equitable by Minister Goyal, also addresses intellectual property rights and gender equity. All five countries involved must ratify the agreement before it comes into force, with Switzerland aiming to do so by 2025. This development precedes general elections in India, where Prime Minister Narendra Modi seeks a historic third term.

While India has committed to reducing its tariff on gold, the impact on imports from Switzerland is expected to be minimal, according to an Indian government official. Swiss economic official Guy Parmelin emphasized the vast trade and investment opportunities in the Indian market, highlighting the exhaustive negotiations that led to the pact.

The agreement, which includes provisions on trade and sustainable development, aims to strengthen ties between India and the EFTA grouping. While it may not immediately address India's trade deficit with the group, analysts anticipate increased investment in key sectors such as medical devices and clean energy, along with expanded exports leveraging Swiss and Norwegian technologies.

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