India-EFTA Trade and Economic Partnership Agreement Signed, Paving Way for Enhanced Cooperation

GG News Bureau
New Delhi, 11th March. India and the European Free Trade Association (EFTA) have sealed a landmark Trade and Economic Partnership Agreement (TEPA) on Sunday, marking a significant milestone in bilateral economic relations. The agreement, signed on March 10, 2024, sets the stage for a new era of cooperation between India and the EFTA member states, namely Switzerland, Iceland, Norway, and Liechtenstein.

The TEPA, which has been in the works for some time, received the green light from the Union Cabinet chaired by the Hon’ble Prime Minister. This agreement is emblematic of India’s commitment to fostering free trade and economic integration with key global partners.

Addressing the occasion, Shri Piyush Goyal, Minister of Commerce and Industry, Food and Consumer Affairs, and Textiles, highlighted the significance of the TEPA, stating, “TEPA is a modern and ambitious Trade Agreement. For the first time, India is signing FTA with four developed nations – an important economic bloc in Europe.”

The agreement encompasses 14 comprehensive chapters covering various aspects such as market access, rules of origin, trade facilitation, investment promotion, intellectual property rights, and sustainable development, among others.

One of the key highlights of the TEPA is the commitment from the EFTA to promote investments amounting to USD 100 billion in India over the next 15 years, aimed at generating 1 million direct jobs. This unprecedented commitment underscores the mutual desire to bolster economic ties and create tangible benefits for both sides.

In terms of market access, the EFTA has offered significant tariff concessions, covering a wide range of products and services. India, on its part, has reciprocated by extending tariff concessions and offering access to various sectors, while safeguarding sensitive industries.

The TEPA is expected to provide a major boost to India’s manufacturing sector, particularly under the ‘Make in India’ initiative, by facilitating access to advanced technologies and specialized inputs. Furthermore, it opens doors for Indian exporters to tap into the vast European and global markets, enhancing the competitiveness of Indian goods and services.

Additionally, the agreement includes provisions for mutual recognition agreements in professional services and commitments related to intellectual property rights at TRIPS level, ensuring a robust framework for collaboration and innovation.

Overall, the signing of the India-EFTA TEPA signals a new chapter in bilateral economic relations, promising to unlock opportunities for trade, investment, and sustainable growth for both India and the EFTA member states.