Lok Sabha Question No. 1268 (UNSTARRED), answered on 2024-07-30
Subject: EFTA Countries
Ministry: COMMERCE AND INDUSTRY
Asked by: Thiru Dayanidhi Maran, Thiru Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1268 ANSWERED ON 30/07/2024

## EFTA COUNTRIES

## 1268.  THIRU DAYANIDHI MARAN:

Will  the  Minister  of COMMERCE  &  INDUSTRY  ( वाणिज्य  एवं  उद्योग  मंत्री ) be pleased to state:

(a) the  extent  to  which  the  Ministry  ensure  that  the  European  Free  Trade  Association (EFTA)  countries  meet  their  $100  billion  Foreign  Direct  Investment  (FDI)  commitment under the Trade and Economic Partnership Agreement (TEPA), if so, the details thereof;

(b) the  details  of  measures  taken  by  the  Government  to  monitor  and  enforce  the withdrawal of concessions, if EFTA fails to fulfil investment commitments;

(c) the extent to which the Ministry has any proposals to attract and facilitate $100 billion in FDI and ensure it contributes to the creation of Ten Lakh direct jobs in the country;

(d) the  details  of  steps  taken  by  the  Government  to  support  Indian  firms  in  forming partnerships with companies from the EFTA nations;

(e) the  extent  to  which  the  Ministry  addressing  quality  standards  and  contamination issues in Indian spice exports to maintain international trade relationships; and

(f) the  details  of  the  key  areas  of  focus  in  the  ongoing  negotiations  for  the  India-UK (United Kingdom of Great Britain and Northern Ireland) FTA and the manner in which the Ministry plan to engage with the new Labour Party Government in the UK?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) To  ensure  that  European  Free  Trade  Association  (EFTA)  countries  meet  their commitment of USD 100 billion in FDI to India, under the TEPA, cooperation between the two sides is envisaged to conduct high-level government-to-government meetings, stakeholder engagement and consultations, thematic exchanges, road- shows, sector-specific business roundtables, and other investment promotion  events. Article 7.5.1(b) of the IndiaEFTA TEPA envisages, a dedicated EFTA investment desk to assist investors from EFTA States seeking to invest, investing or having invested in India.

(b) Article  7.4  of  the  India-EFTA  TEPA  envisages  a  Sub-Committee  on  Investment Promotion  and  Cooperation  (referred  to  as  'Investment  Sub-Committee'),  consisting  of government  officials  from  both  sides  to  monitor  the  progress  of  the  commitment.  Under Article 7.8 of the India-EFTA TEPA, India may undertake remedial measures to rebalance concessions                  given to  EFTA States in the Schedule of Commitments under the Chapter on Trade in Goods, if EFTA fails to fulfil investment commitments.

(c) The  following  activities  have  been  identified  to  attract  and  facilitate  $100  billion in FDI and ensure it contributes to the creation of ten lakh direct jobs in the country:

- Regular economic and scientific missions with high-ranking delegations; Annual
- high-level meetings between individual EFTA States and India with  the participation of the private sector;
- Regular investment promotion events, such as, at the World Economic  Forum with participation of the private sector;
- Sector-specific business roundtables;
- Roadshows in India and in the different EFTA States;
- Thematic expert exchanges;
- Support for Invest India in setting up representations in some EFTA States;  Exchanges
- within the framework of existing town twinning programmes; Support for vocational
- education and training projects; and
- Other activities as mutually agreed by the Parties.

(d) Government-to-Government and Government-to-Business meetings are being organised at the highest levels to work towards the next steps on the implementation  of  the TEPA,  including  to  realize  the  objective  of  USD  100   billion in FDI and creation of 1 million jobs by EFTA investors in  India. Regular business-to- business meetings are also being encouraged for forging partnerships with companies from the EFTA nations.

(e) In  order  to  address  quality  standards  and  contamination  issues  in  Indian  spice exports  to  maintain  international  trade  relationships,  Spices  Board  India has  established  8 state-of-the-art  quality  evaluation  laboratories  (QEL)  across major  production/  exporting centers, viz. Cochin, Mumbai, Guntur, Chennai, Delhi, Tuticorin, Kandla and Kolkata and has also empanelled NABL accredited laboratories across India. The export consignments are  screened  for  known  and  emerging quality  and  safety  concerns  including  toxins, contaminants, residues. The parameters are revised periodically based on the  standards of the importing country, potential and emerging risks etc. For the EFTA  countries,  pre-shipment

sampling and testing  for the  parameters such as Aflatoxin & Sudan Dye for Chilli & Chilli products and Ethylene oxide for Spices & Spice products falling under HS codes 0904 to 0910, 2103 & 1302 is undertaken. Further, assistance is provided to stakeholders for postharvest improvement of spices, setting up of in-house laboratories for testing the quality and safety  parameters  across  various  stages  of  the  supply  chain,  obtaining  certifications  that demonstrate  compliance  with  quality  and  safety  aspects,  purchase  of  rapid  quality  testing devices for spices etc. Capacity building programs are also conducted for the stakeholders aimed  at improving the quality and safety aspects of spices.

(f) India and the UK are negotiating a Free Trade Agreement (FTA) since 13 th January 2022. 13 rounds of negotiations have been held so far. Trade in Goods, Trade in Services, Rules of Origin are key focus areas under negotiations. Both sides are engaged to work out a trade  deal  that  is  fair,  equitable,  balanced  and  mutually  beneficial,  which  takes  into consideration the ambitions and sensitivities of both the sides.

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