The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) that came into effect on October 1, is a historic agreement that marks India’s first Free Trade Agreement (FTA) with four developed European nations – Switzerland, Norway, Iceland, and Liechtenstein.
The TEPA promises to unlock $100 billion in investments and create 1 million direct jobs in India over the next 15 years.
This binding commitment on investment and job creation makes it one of the most ambitious trade pacts in India’s economic history. The agreement is expected to boost India’s exports in various sectors, including agriculture, marine products, electronics, and textiles.
The TEPA offers several key benefits, including:
-Tariff Concessions: EFTA has offered tariff concessions on 92.2 percent of tariff lines, covering 99.6 percent of India’s exports.
-Investment Surge: EFTA states have committed to increasing foreign direct investment (FDI) in India by $50 billion in the first 10 years, followed by an additional $50 billion in the next five years.
-Services Edge: The agreement opens new markets for IT, education, media, and business services, with Mutual Recognition Agreements (MRAs) enabling smoother mobility for professionals.
-Sustainable Growth: The TEPA focuses on inclusive development, technology transfer, and clean energy collaboration, aligning with Make in India and Atmanirbhar Bharat initiatives.
The India-EFTA TEPA represents a historic milestone in India’s strategic partnership with developed European nations. With its focus on investment, job creation, and sustainable development, this agreement is poised to unlock new opportunities for India’s growth and development.
As India continues to navigate the complexities of global trade, this partnership is expected to play a significant role in shaping the country’s economic future.