For the huge Indian middle class, it could mean slightly cheaper Swiss watches and chocolate and also, Norwegian salmon.
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This is a story about numbers: Switzerland’s GDP is less than $1 trillion, but it’s per capita GDP is nearly $100,000 (the USA is $70,000), making it one of the world’s richest countries. Similarly, Norway’s GDP is about $550 billion, but it’s per capita GDP is $92,000. Liechtenstein, a country of less than 50,000 nationals, has a per capita GDP of $180,000 and Iceland, with about 400,000 people, has a per capita GDP of over $85,000.
These are serious numbers, even if the combined population of these countries is roughly 15 million or so. Together, these four countries form the European Free Trade Association (EFTA). While India’s free trade agreements with the European Union and Britain are in the process, the one with the EFTA got done today. For the huge Indian middle class, it could mean slightly cheaper Swiss watches and chocolate and also, Norwegian salmon.
Three major advantages will be in the areas of trade and investment, transfers of technology and movement of workers. It will involve investment by these countries (Switzerland is already India’s seventh biggest investor) into India, creating more jobs and building up supply chains, which were so badly damaged during the Covid crisis.
With jobs can come high technology. Again, Switzerland has been No.1 when it comes to global innovation and its technological capabilities (think Rolex watches) are well known. So, the FTA brings ToTs and also, the creation of better research facilities. Iceland is known for its green technology, including carbon capture machinery, Liechtenstein, for its financial systems and Norway, also strong in climate change research and development, is one of the largest exporters of petroleum. It has enormous investment capabilities too.
India’s skilled workforce, especially in areas like IT and pharmaceuticals, could be in demand in the EFTA countries. It could mean more jobs for Indians in these countries.
