Trade Wars Unhealthy for India & Switzerland: Swiss Diplomat

Ahmedabad, Feb 12 (PTI) Switzerland's State Secretary for Economic Affairs Helene Budliger Artieda said on Wednesday that any "trade wars or trade restrictions" will be unhealthy for her country and India.

She said India has all the ingredients to become a global manufacturing hub, and many Swiss firms are eager to invest.

Artieda said the free trade agreement finalised by India and the EFTA (European Free Trade Association) bloc last March, officially called the Trade and Economic Partnership Agreement (TEPA), is expected to come into force by the end of this year.

"Every morning, we wake up and see new announcements of some trade barriers and trade wars, which is unhealthy for countries like Switzerland or even India," she said.

She was part of a Swiss Economic Mission invited to inaugurate the aseptic carton plant of SIG, a global packaging solutions provider headquartered in Switzerland.

The plant, situated near Bavla town in Ahmedabad district, has been set up with an investment of 90 million Euros (Rs 810 crore) by SIG.

Artieda said India should open its doors to foreign firms, including Switzerland, to become a global manufacturing hub.

"India has an amazing opportunity because you have a market of 1.4 billion people and you are also a democracy, which is important for countries like Switzerland. You can become the premier manufacturing hub for the world," Artieda told media persons.

She said India is blessed with a young population, while Europe has become an "ageing society".

"India also has talented people. You have all the ingredients to be a global manufacturing hub. But, you have to open your doors for us, so that we can support you on the technology, investment, and job creation front," the Swiss official said.

The Swiss official said EFTA has pledged to invest USD 100 billion in 15 years under TEPA.

Iceland, Liechtenstein, Norway, and Switzerland are members of EFTA.

"Our officials have informed me that companies are showing massive interest in India. Because of TEPA, interest in India has jumped as our companies are enquiring how they can invest in India or do business here," she said.

Artieda said the free trade agreement between the two regions- India and EFTA- was finalised after "very tough negotiations"

"It (negotiations) lasted for 16 years and I have to come to India seven times for negotiations. To create a balanced deal, we (the bloc) needed to do something extraordinary. Thus EFTA pledged USD 100 billion investment for the next 15 years. Under this pact, Switzerland will help create 1 million jobs in India," she said.