India to Attract $100 Billion in FDI from EFTA Countries: Comm Min Goyal

India remains a key destination for overseas investments and is likely to attract USD 100 billion in foreign direct investments (FDIs) from the four-nation European bloc EFTA, Union Commerce and Industry Minister Piyush Goyal said on Saturday.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

Speaking at an Assocham Managing Committee meeting here, Goyal also emphasised the need to stay competitive.

Earlier, he said the free trade agreement between India and the EFTA will be implemented from October 1.

The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

At a separate event in the financial capital, Goyal also inaugurated the Data Security Council of India (DSCI) Advanced Cyber Skill Centre at CII Model Career Centre in the western suburb Kandivali.

"My calculation, or my gut sense, is that USD 100 billion FDI, along with Indian promoter equity, when they come into your companies, it will catalyse to at least USD 500 billion investment in India into brownfield or greenfield," said the minister at the Assocham event.

Besides Goyal, the event was also attended by Sanjay Nayar, President, Assocham and Sajjan Jindal, former Assocham President and JSW Group Chairman, among others.

The minister said the FDI commitment would also create a million direct jobs in the coming years, and help technology and innovation through Swiss SMEs entering Indian markets.

He asked Assocham members to focus on scale and quality to remain competitive and take advantage of these FTAs.

Citing a game-changing initiative, Goyal said that the Cabinet has sanctioned Rs 1 lakh crore towards an innovation fund to drive R&D in the country.

"It can be given out to all of you or any company willing to do it in research and development in the form of a grant, in the form of a low-cost loan, interest-free loan, or term loan," he said.

Recognising the key role of MSMEs, the minister stressed the need for enabling these enterprises with access to global markets, modern technology, and affordable capital.

With 2.4 million STEM graduates annually, including 43 per cent women, India is well-positioned to scale up its manufacturing and innovation capabilities.

Recognising India's potential as a global capability hub, he said the country can emerge as a high-quality destination for Global Capability Centres (GCCs), as India now offers comparable or superior talent at a fifth of global costs, lower-than-expected real estate and energy costs, and a compelling alternative to offshore operations amid declining H1B dependency.

On the social security pact with the UK, Goyal said India has successfully negotiated a social security agreement with the UK, enabling Indian professionals on short-term UK work visas (up to 3 years) to contribute to their Indian EPF accounts rather than losing 25 per cent of their overseas earnings in UK social security contributions.

On the government's Bharat Mart initiative, the minister said there are plans to replicate a similar model for Indian MSMEs, particularly leveraging Mumbai's strategic and financial advantage, with government support and incentives promised.

On the upcoming EU Deforestation Regulation (EUDR), which mandates supply chain traceability for seven commodities like coffee, wood, and furniture, among others, requiring detailed farmer and production data to be uploaded, the minister acknowledged this regulation as a non-tariff barrier.

He urged Indian industries to proactively engage and negotiate such barriers and emphasised that quality compliance, not just quantity, must be a national priority.

The centre at Kandivli is equipped with advanced training infrastructure and facilities to conduct in-depth training in cybersecurity to create industry-ready talent.