FTA With Four European Countries To Take Effect From Oct 1: Piyush Goyal

(MENAFN- KNN India) New Delhi, July 19 (KNN) The free trade agreement between India and the European Free Trade Association (EFTA) will come into force on October 1, Union Commerce and Industry Minister Piyush Goyal announced on Saturday.

The agreement, officially titled the Trade and Economic Partnership Agreement (TEPA), was signed on March 10, 2024, following nearly 16 years of negotiations.

The EFTA bloc comprises Iceland, Liechtenstein, Norway, and Switzerland, with Switzerland being India's principal trading partner among the four.

Under the pact, EFTA has committed to invest USD 100 billion in India over 15 years-USD 50 billion within the first decade and another USD 50 billion in the subsequent five years.

The investment is expected to create one million direct jobs in India, making it the first Indian trade agreement to feature such a substantial investment pledge.

In exchange, India will progressively eliminate or reduce tariffs on 82.7 percent of its tariff lines, covering 95.3 percent of EFTA exports.

This includes high-value items such as Swiss watches, chocolates, biscuits, clocks, and cut and polished diamonds. Notably, more than 80 percent of India's imports from EFTA currently consist of gold.

Indian consumers are likely to benefit from lower prices on premium Swiss goods, as customs duties on these products will be phased out over a ten-year period.

In the services sector, India has offered market access in 105 sub-sectors, including accounting, computer services, distribution, and healthcare.

In return, India has secured service-related commitments across a broad range of sub-sectors-128 from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein.

The agreement also opens new opportunities for Indian service providers in areas such as legal services, R&D, IT, auditing, and audio-visual sectors.

With over 40 percent of Switzerland's global services exports directed toward the European Union, Indian firms could potentially use Switzerland as a gateway to access EU markets more effectively.

India-EFTA bilateral trade stood at USD 24.4 billion in 2024–25. The implementation of TEPA is expected to deepen trade ties, attract significant foreign investment, and support India's broader goal of integrating into global value chains.

(KNN Bureau)

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