TEPA, a Free Trade Agreement (FTA) signed in March, 2024 focuses on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures etc.
About European Free Trade Association (EFTA)
|
Key Provisions of TEPA
- First Binding Commitment: 1st FTA making a binding commitment of $100 bn investment (FDI) and 1 million direct jobs in India in next 15 years.
- In return, India will allow several products (e.g. Swiss watches, chocolates, and cut and polished diamonds) at lower or zero duties.
- Market Access: EFTA’s market access offer covers 100% of non-agri products and tariff concession on Processed Agricultural Products (PAP).
- Sectors such as dairy, soya, coal and sensitive agricultural products are kept in the exclusion list.
- Tariff Reduction: EFTA will eliminate or reduce import tariffs on 99.6% of India’s exports. India will eliminate or reduce import tariffs on 95.3% of the exports from EFTA nations.
- Others: IPR commitments, Mutual Recognition Agreements in Professional Services E.g. nursing
India-EFTA trade Relation:
- In 2024–25, India-EFTA trade totaled USD 24.4 billion, with India facing a large trade deficit.
- A large part of the deficit is due to imports of gold from Switzerland.
- Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.
