India and the European Free Trade Association (EFTA), composed of Norway, Switzerland, Iceland, and Liechtenstein, inked a significant $100 billion ree trade deal in New Delhi-as first reported by Al Jazeera.
The billion-dollar deal, Called the Trade and Economic Partnership Agreement (TEPA), is a major step in their partnership, aiming to boost exports, investments, and job creation.
The free deal will remove most import tariffs on industrial products from the bloc in exchange for investments spread over 16 years. It also opens avenues for EFTA countries to tap into the country's thriving market while attracting more investments from EFTA nations, fostering economic integration and prosperity for both sides.
"The India-EFTA Trade and Economic Partnership Agreement [TEPA] marks a historic milestone in our growing partnership," Indian Commerce and Industry Minister Piyush Goyal said after the signing in New Delhi.
A key aspect of the agreement involves liberalized trade rules for Indian agricultural exporters and job opportunities for professionals in the EFTA region.
Additionally, the pact includes provisions on intellectual property rights and gender equity, reflecting modern trade practices and ensuring fairness for all parties.
Under the deal, India will also gradually or immediately slash high customs duties on 95.3% of industrial imports from Switzerland, except for gold. Norway anticipates substantial benefits, with zero import taxes on most goods, alleviating the burden of Norwegian exporters.
All five countries must ratify the agreement before implementation, with Switzerland aiming to complete the process by 2025.
The signing precedes India's upcoming general elections, where Modi seeks reelection for a third term. I
Currently, India ranks as EFTA's fifth-largest trading partner, highlighting the substantial economic ties between the regions, with bilateral trade totaling $25 billion in 2023, according to India's Ministry of Trade.
The country's recent trade agreements with Australia and the United Arab Emirates and ongoing negotiations with the United Kingdom align with Prime Minister Narendra Modi's ambitious goal of achieving $1 trillion in annual exports by 2030.
Established in 1960, EFTA aims to promote free trade among its members, with India joining a list of recent trade partners, including Australia and the United Arab Emirates. According to Channel News Asia, talks of a trade agreement with Britain are also underway, heralding further economic cooperation on the horizon.
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