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India signs trade agreement with European Free Trade Association
The agreement will also facilitate technology collaboration and access to world-leading technologies.
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Officials at the India-EFTA trade agreement signing ceremony / (Image: Ministry of Commerce & Industry, India)
India and members of the European Free Trade Association (EFTA) signed a trade and economic partnership agreement (TEPA) to boost trade and investments.
The EFTA, an inter-governmental organization, was set up in 1960 for the promotion of free trade and economic integration for the benefit of its four member states namely Iceland, Liechtenstein, Norway and Switzerland.
Prime Minister Narendra Modi-chaired cabinet approved the signing of the TEPA with EFTA. According to a statement by India's Ministry of Commerce and Industry,. India has secured an investment commitment of US$ 100 billion over the next 15 years to facilitate job creation for one million individuals.
Commenting on the agreement, India's Commerce Industry Minister Piyush Goyal said, "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. For the first time in the history of FTAs, binding commitment of US$ 100 billion investment and 1 million direct jobs in the next 15 years has been given."
Goyal further emphasized that the agreement will boost the ‘Make in India’ initiative and opportunities for the young and talented workforce. It will also provide a window for Indian exporters to access large European and global markets, he added.
Stronger Ties Inked!
— Piyush Goyal (मोदी का परिवार) (@PiyushGoyal) March 10, 2024
Delighted to sign the India-EFTA Trade & Economic Partnership Agreement, yet another pact of progress for our nation.
This watershed agreement, realised under the guidance & leadership of PM @NarendraModi ji, marks the dawn of a new era of prosperity and… pic.twitter.com/4h6FKoVAIO
Hailing the signing of the agreement, PM Modi said, "This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our bonds with EFTA nations." India will extend support to EFTA countries and felicitate industry and businesses to achieve beyond targets, he added in a note.
Delighted by the signing of the India-EFTA Trade & Economic Partnership Agreement. This landmark pact underlines our commitment to boosting economic progress and create opportunities for our youth. The times ahead will bring more prosperity and mutual growth as we strengthen our… https://t.co/z40wurQn9M pic.twitter.com/i9vQM9jYAi
— Narendra Modi (@narendramodi) March 10, 2024
The watershed agreement, as stated by Goyal, comprises fourteen chapters with a main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development, and other legal and horizontal provisions.
India has offered 105 sub-sectors to the EFTA and secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland.
The agreement has also put forward a legal commitment for the first time in history to promoting target-oriented investment and creating jobs. The Commerce Ministry additionally highlighted that the EFTA is offering 92.2 percent of its tariff lines which covers 99.6 percent of India’s exports.
The EFTA’s market access offer covers 100 percent of non-agricultural products and tariff concession on processed agricultural products (PAP). Meanwhile, India provides 82.7 percent of its tariff lines, which covers 95.3 percent of EFTA exports of which more than 80 percent import is gold. The effective duty of gold remains untouched.
The Ministry also emphasized that the agreement would stimulate India's services exports in sectors of key strength or interest such as information technology (IT) services, business services, and personal, cultural, sporting, and recreational services, among other educational and audio-visual services.
The agreement has provisions for partnerships in professional services, like nursing, chartered accountants, and architects. In addition, the TEPA is expected to boost exports of Indian-made goods as well as provide opportunities for the services sector to access more markets.
In addition to creating direct job opportunities with technical training, the TEPA will also facilitate technology collaboration and access to world-leading technologies in precision engineering, health sciences, renewable energy, innovation, and research and development.
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