India-EFTA trade pact to enhance stability, predictability in bilateral ties: Piyush Goyal

The trade agreement established between India and the four-nation European Free Trade Association (EFTA) is anticipated to enhance stability, predictability, and continuity in the economic relations between the two regions, as stated by Commerce and Industry Minister Piyush Goyal on Tuesday.

The European Free Trade Association (EFTA) consists of Iceland, Liechtenstein, Norway, and Switzerland, with India providing a substantial market and a skilled workforce, while the EFTA countries contribute capital, advanced manufacturing capabilities, and technical expertise.

The Trade and Economic Partnership Agreement (TEPA), which was signed on March 10, 2024, obligates EFTA members to invest $100 billion in India over a span of 15 years. In exchange, India will lower or eliminate import duties on a range of products, including Swiss watches, chocolates, and cut and polished diamonds.

The agreement is projected to become operational by September-October, and India has already finalized its ratification process.

To promote deeper engagement, the minister encouraged businesses from both regions to utilize the agreement to enhance trade and investment flows. He also suggested a reciprocal mechanism for certification services to facilitate smoother bilateral trade.