India Set to Attract $100 Billion in FDI from EFTA Countries: Piyush Goyal

 India Set to Attract $100 Billion in FDI from EFTA Countries: Piyush Goyal

Need to focus on scale and quality to take advantage of FTAs

India remains a key destination for overseas investments and is likely to attract $100 billion worth of Foreign Direct Investments (FDIs) from four European nations - Norway, Switzerland, Liechtenstein, and Iceland, said Piyush Goyal, Union Minister of Commerce and Industry at an ASSOCHAM Managing committee meeting in Mumbai. He was joined on the dais by Sanjay Nayar, President Assocham and Sajjan Jindal, Past President Assocham and Chairman JSW Group. Mr. Goyal also said that the EFTA-India FTA agreement will take effect on October 1, 2025.

He urged ASSOCHAM members present at the meeting to focus on scale and quality to remain competitive and take advantage of these FTAs. He also highlighted the need to focus on innovation to stay competitive. 

The event saw the participation of leading CEOs from Indian Industry including Mr. B K Goenka, Chairman Welspun World, Dr. Niranjan Hiranandani, Founder & Chairman, Hiranandani Group, Mr. Vineet Aggarwal, Managing Director, Transport Corporation of India Ltd., Mr. M K Sanghi, Chairman, M K Sanghi Group, Mr. Sunil Kanoria, Trustee, Kanoria Foundation, Ms Falguni Nayar, CEO of Nykaa, Mr. Sanjeev Mehta, Executive Chairman, El Carterton India, Mr. Anant Goenka, Vice Chairman, RPG Group and Mr. Gunit Chadha, Founder and MD, APAC Financial Services Pvt. Ltd. among others.

Speaking at the event, 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

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

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

“When I tell you that a 1 lakh crore rupees, which is about $12 billion, invest it, it'll multiply through many rotations. 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 low-cost loan, interest-free loan, long term loan,” said Mr. Goyal.

Recognizing the pivotal role of MSMEs, Mr. Goyal 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% 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 Centers (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 Indian EPF accounts rather than losing 25% of their overseas earnings in UK social security contributions.

 When asked by a delegate on the government’s Bharat Mart initiative, the union minister highlighted 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, furniture, etc.), 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.