The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially come into force on October 1, with the four-nation bloc comprising Switzerland, Norway, Iceland and Liechtenstein.
Under the agreement, EFTA has committed to an investment of $100 billion over a period of 15 years, expected to facilitate the creation of one million direct jobs in India.
The government will host a formal event at Bharat Mandapam in New Delhi to mark the occasion. Commerce and Industry Minister Piyush Goyal, along with ministers from the EFTA nations, will preside over the function, which will also be attended by senior officials and industry representatives.
India and EFTA signed the TEPA on March 10, 2024, but its implementation was delayed pending procedural approvals in member countries.
Under the pact, EFTA will provide market access on 92.2 per cent of its tariff lines, covering 99.6 per cent of India’s exports to the bloc. The offer includes 100 per cent of non-agricultural products and tariff concessions on selected processed agricultural goods.
India, in turn, is offering concessions on 82.7 per cent of its tariff lines, covering 95.3 per cent of EFTA exports. However, the effective duty on gold remains unchanged.
Sensitive areas, including sectors linked to the Production Linked Incentive scheme such as pharmaceuticals, medical devices and processed food, have been given careful consideration. Products like dairy, soya, coal and other sensitive agricultural items remain excluded.
Also Read : India-EFTA trade pact implementation from Oct 1: Piyush Goyal
For Indian consumers, the agreement is expected to reduce tariffs on specific EFTA goods such as Swiss watches, whisky and chocolates.
The TEPA also includes provisions for mutual recognition of services, allowing professionals in fields such as nursing, chartered accountancy and architecture to work in EFTA countries.
Intellectual property rights form another key aspect, with the deal addressing India’s concerns over patent safeguards, particularly the evergreening of patents in pharmaceutical products. A sustainability clause has also been incorporated, covering labour rights, environmental protection and human rights.
Commerce Minister Piyush Goyal has described the agreement as a “Trust and Efficiency Partnership” a relationship built on mutual confidence and complementarity.
He expressed optimism that the deal would usher in a new era of cooperation between India and the four EFTA nations, opening fresh opportunities for trade, investment and innovation.
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