India and four European countries have signed a $100 billion free trade agreement

An alliance of four non-EU European nations has agreed to a free-trade agreement (FTA) with India.

According to India's commerce minister, the agreement with the European Free Commerce Association (EFTA) will result in investments worth $100 billion (£77.8 billion).

Norway, Switzerland, Iceland, and Liechtenstein comprise the EFTA.

The declaration coincides with the final two years of FTA discussions between the UK and India.

Negotiations lasted nearly 16 years before reaching a deal. In exchange for investments spread over 15 years, India would remove the majority of the import taxes on industrial goods from the four nations.

It is anticipated that the investments will come from a variety of sectors, such as manufacturing, equipment, and medicines.

"The agreement enhances market access and simplifies customs procedures making it easier for Indian and EFTA businesses to expand their operations in the respective markets," the EFTA stated in a statement.

The agreement must now be ratified by India and the other four EFTA countries before it can go into force; Switzerland intends to do so by the end of next year.

This year, India will host national elections as Prime Minister Modi runs for an unprecedented third term in power.

India has struck trade agreements with the United Arab Emirates and Australia in the past two years.

(Sources: investing.com, reuters.com)