India’s new trade agreement with the European Free Trade Association (EFTA) marks a quiet but significant evolution in the country’s approach to global commerce. While much of the public conversation has focused on chocolates and wines becoming cheaper in India, the real substance of the deal lies elsewhere: in the way India is linking trade liberalisation to long-term investment commitments. For decades, India’s trade pacts were largely tariff-centric. Negotiations focused on which goods would receive preferential treatment, how fast duties would be lowered, and what exemptions would remain.

Investment was often left to separate bilateral treaties or handled outside trade agreements altogether. The EFTA deal departs from that pattern. By committing to cut tariffs on 80-85 per cent of goods while simultaneously securing a pledge of $100 billion in investments and one million direct jobs over 15 years, India has, for the first time, embedded........

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