India-EFTA Trade Pact Aims $100 Billion Investment, 1 Million Direct Jobs From Oct 1

(MENAFN- IANS) New Delhi, Sep 30 (IANS) As the India-European Free Trade Association (EEFTA) Trade and Economic Partnership Agreement (TEPA) comes into effect from October 1, the India-EFTA Desk has been inaugurated as a single-window platform to facilitate EFTA investments in renewable energy, life sciences, engineering, and digital transformation, while fostering joint ventures, SME collaborations, and technology partnerships, the government said on Tuesday.

The TEPA establishes India's first FTA with four developed European nations and commits $100 billion in investments and 1 million direct jobs over 15 years.

India's exports to EFTA stood at $72.37 million in 2024, contributing 0.41 per cent of EFTA's total imports. This agreement is expected to reduce tariff barriers and expand India's share in key commodities.

The TEPA enhances market access for goods and services, strengthens intellectual property rights, and fosters sustainable, inclusive development, while supporting Make in India and Atmanirbhar Bharat initiatives.

According to the Ministry of Commerce and Industry, the agreement comprises 14 chapters with the main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions.

The EFTA's market access offer under TEPA covers 100 per cent of non-agri products and a tariff concession on Processed Agricultural Products (PAP).

Sensitivity related to PLI in sectors such as pharma, medical devices and processed food, etc., has been taken while extending offers.

Under the TEPA, the EFTA has offered 92.2 per cent of tariff lines encompassing 99.6 per cent of India's exports. It includes 100 per cent non-agricultural products and tariff concessions on PAP.

India's offer to the EFTA covers 82.7 per cent of tariff lines, accounting for 95.3 per cent of the EFTA exports.

Over 80 per cent of these imports are gold, with no change in effective duty on gold. Sensitive sectors protected, including pharma, medical devices, processed food, dairy, soya, coal, and sensitive agricultural products.

"The TEPA presents stronger opportunities in IT, business services, cultural and recreational services, education, and audio-visual services. The TEPA ensures IPR commitments at the TRIPS level. The IPR chapter with Switzerland has a high standard for IPR, showing a robust IPR regime. India's interests in generic medicines and concerns related to evergreening of patents have been fully addressed," according to the ministry.

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