India will be implementing its first Europe-oriented trade agreement from October 1, confirmed Commerce and Industry Minister Piyush Goyal. The Trade and Economic Partnership Agreement (TEPA), concluded with the European Free Trade Association (EFTA) in March 2024, will cover Switzerland, Norway, Iceland and Liechtenstein.
The agreement will provide tariff reductions on about 80–85% of goods imported from the EFTA bloc, while nearly 99% of Indian exports will have duty-free access to their markets. However, Indian government has taken a protectionist stance for sensitive sectors such as dairy and certain farm products and they have been excluded to protect domestic interests.
As per media reports, there will be formal ceremony at Bharat Mandapam in New Delhi to mark the agreement’s entry into force, with ministers from the EFTA nations expected to join Goyal, alongside senior officials and industry leaders.
Talks with EFTA began in 2008 and after 21 negotiation rounds the deal was sealed on March 10, 2024. Its implementation was delayed for quiet sometime, due to some ratification in the four European states. TEPA will mark India’s first comprehensive agreement with a European grouping, and it is the first time New Delhi has linked market access to firm investment commitments. The four EFTA economies have committed to invest $100 billion in India over 15 years—$50 billion in the first decade and another $50 billion in the following five years.
The government expects this investment to catalyse job creation, with projections of one million direct employment opportunities over the next
decade-and-a-half. The trade agreement will also serve as a gateway for Indian firms to deepen their presence in advanced European markets while creating opportunities for EFTA businesses to expand in India.
As notified by EFTA, companies in these four countries are already preparing for the new framework, exploring investment avenues and strengthening partnerships with Indian firms. They already have an EFTA Desk to help businesses tap Indian market.