India and EFTA Sign Trade & Economic Partnership Agreement
India and the European Free Trade Association (EFTA) signed a Trade and Economic Partnership Agreement (TEPA) on March 10, 2024
Addressing on the occasion, Piyush Goyal, Minister of Commerce and Industry, Food and Consumer Affairs, and Textiles, stated, “TEPA marks a modern and ambitious trade agreement. For the first time, India is signing an FTA with four developed nations—an important economic bloc in Europe. Binding commitments of $100 billion in investment and 1 million direct jobs over the next 15 years have been established for the first time in the history of FTAs.”
“The agreement will provide a significant boost to Make in India and offer opportunities to our young and talented workforce. The FTA will open doors for Indian exporters to access large European and global markets,” Goyal added.
TEPA marks a significant milestone as India’s first Free Trade Agreement (FTA) with four developed nations in Europe: Switzerland, Iceland, Norway and Liechtenstein.
The key highlights of the agreement include: It aims to boost investment and create 1 million direct jobs in India over the next 15 years, representing a historic commitment in FTAs. EFTA offers access to 92.2% of its tariff lines, while India provides access to 82.7% of its tariff lines, focusing on non-agricultural products and excluding sensitive sectors like pharma and agriculture. The agreement covers various sectors, including services, with commitments to Intellectual Property Rights at TRIPS level. TEPA emphasizes sustainable development, transparency, and trade facilitation. It empowers Indian exporters to access European markets, fostering “Make in India” and Atmanirbhar Bharat initiatives. TEPA is expected to accelerate economic growth, enhance trade relations, and create new opportunities for both India and EFTA member countries.
