Trans-regional economics
India’s $100 billion trade deal with four European nations is a lesson in resilience. It took almost 16 years for New Delhi and the European Free Trade Association (EFTA) to seal an agreement, which will see prioritised and hassle-free trade between these countries. Moreover, the fact that it will put India on the map in terms of investment profile for the next 15 years is a value addition. India, being the fifth largest economy, is on the move and its recent geo-economic strategy has inked many hefty deals with the UAE, Australia and ASEAN. With a similar landmark pact with Britain in the wings, it is becoming a new destination of preferential economics with the 27-member EU.
This achievement can also be read in the headway that Delhi has made with BRICS and SCO. But as far as EFTA is concerned, the fact that Norway and Switzerland being welfare economies, and Iceland and Liechtenstein in the rank of progressive states, have found a developing India to be a port to call for investment necessitates some introspection for others in the region. EFTA, notwithstanding the somersaults in the region, has spanned into 10th largest trader in terms of merchandise, and eighth largest in services. This probably collaborates well with India’s cheap labour and a growing services’ generation glued to information technology.
In an era of military alliances, it’s time to recreate some space for economies, which could pave the way for mutual growth and prosperity, as well as new markets for boosting exports and attracting investment. China has led from the front in setting a precedent of developmental economics. The multi-billion dollar BRI’s biggest laurel is that it is apolitical, and links five continents without Beijing looking into the minute sheet of inclinations in realpolitik. In the same breath, the trans-Euro-Asia corridor proposed up till India via the Middle East is next in the line of innovation. This summarises the essentiality of tapping economic potential, and making it accessible for all without any prejudice.
Published in The Express Tribune, March 14th, 2024.
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