India-EU FTA: Addressing Tariffs & Non-Tariff Barriers

Stockholm, Jun 11 (PTI) The EU and India should work towards a free trade agreement that addresses tariff and non-tariff barriers as both regions are currently "a bit over-regulated", Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa said on Wednesday.

Both issues are key for a smoother flow of goods across borders.

Addressing business leaders of India and Sweden, he said the European Union and India will gain significantly from the proposed free trade agreement (FTA).

"The best for both the EU and for India will be an FTA, which is not only about tariffs but also includes non-tariff barriers...I think, both in the EU and in India, we are... just a bit over-regulated right now," Dousa said.

India can become a trusted manufacturing hub if it can continue to attract foreign direct investments, he added.

As many as 75 Indian companies have a presence in Sweden. They have employed about 7,000 people.

He also said that Sweden can help India increase its share of manufacturing in its GDP.

Speaking at an event, Commerce and Industry Minister Piyush Goyal said India provides huge opportunities for investments for Swedish firms.

To improve the investment climate in India, he said the government is taking a series of steps like investing about USD 125 billion in infrastructure annually.

"We are currently going through a virtuous cycle of growth," Goyal said, adding that 280 Swedish companies have a presence in India.

Non-tariff barriers are part of discussions in the proposed trade agreement between India and the 27-nation EU, he added.

Goyal is here on a two-day official visit to discuss ways to boost trade and investments between the two countries.