India-EFTA Trade Pact Covers 99.6% Of Indian Exports: Commerce Secretary

(MENAFN- Live Mint) New Delhi: India's trade pact with the European Free Trade Association (EFTA) offers tariff coverage for 99.6% of India's exports to the bloc, commerce secretary Rajesh Agrawal said on Wednesday. At an outreach event for major exporters in New Delhi, Agrawal urged exporters, industry bodies and state governments to draw up market-specific plans to make greater use of the agreement, according to a press statement from the commerce industry.

The India-EFTA Trade and Economic Partnership Agreement (TEPA), which came into force on 1 October 2025, has opened up significant market access for Indian businesses across Iceland, Liechtenstein, Norway and Switzerland, Agrawal said. The outreach event was held as part of the second India-EFTA Prosperity Summit 2026, with leaders from all four EFTA states in New Delhi to mark the first anniversary of TEPA and discuss the way forward.

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“EFTA's commitments cover 92.2% of its tariff lines, accounting for 99.6% of India's exports, with full coverage of non-agricultural products,” Agrawal said. India, in turn, has committed 82.7% of its tariff lines, covering 95.3% of EFTA exports.

Tariff stability

The commerce secretary said the agreement should not be viewed merely as a tariff-reduction arrangement, with predictability emerging as one of its key benefits for businesses.“Tariff s will remain stable for the foreseeable future, with no surprises,” Agrawal said, adding that this will allow companies to make investments, build supply chains, and plan for the future with greater confidence.

He urged Indian companies to build partnerships with businesses in EFTA countries and develop value chains spanning inputs to final products. Such partnerships, he said, could improve reliability on both sides and help Indian businesses integrate more deeply with high-income markets.

The agreement also provides opportunities in agriculture, with duties on many products coming down to zero, Agrawal said. He asked exporters to identify products where the tariff reductions create an opportunity and develop long-term supply arrangements with buyers in EFTA markets.

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The four EFTA countries together import goods and services worth more than $500 billion annually, providing a sizeable market for Indian exporters, the secretary said.

Agrawal called on export promotion councils, industry associations and state governments to take the opportunities created by TEPA to businesses across the country and explain how companies can use the agreement to expand exports.

He also called for a more targeted approach to export promotion, asking stakeholders to prepare a five-year action plan with each EFTA partner country and for individual markets. Such plans should identify how India can increase its presence in each market as well as the non-tariff barriers that need to be addressed, he said.

Investment push

The secretary also highlighted the investment commitments under TEPA as a key feature distinguishing the pact from other trade agreements. Under Article 7.1 of the agreement, the EFTA states have committed to aim to increase foreign direct investment from EFTA investors into India by $50 billion within 10 years of the agreement coming into force and by an additional $50 billion over the following five years. The agreement also includes an aim to facilitate the creation of 1 million jobs in India within 15 years.

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Agrawal said India's expanding domestic market offers investment opportunities across sectors and that stronger partnerships between Indian and EFTA businesses could take investment beyond the levels envisaged under the agreement.

He also emphasized the need for Indian businesses to view EFTA not simply as a destination for exports but as an extension of their potential market.“The idea is also that businesses in India should see the market of EFTA countries as an extension of their market,” he said.

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