New Delhi, March 10th: India and the European Free Trade Association (EFTA), a bloc of four European nations, signed a landmark free trade agreement (FTA) on Sunday. This pact is expected to boost bilateral trade and investment between the two regions.
The Trade and Economic Partnership Agreement (TEPA) was signed and documents exchanged in the presence of Union Commerce and Industry Minister Piyush Goyal. The agreement encompasses various areas including trade in goods and services, intellectual property rights (IPR), investment promotion, and trade facilitation measures.
Boosting Trade and Investment
This agreement, approved by the Indian Cabinet earlier this week, aims to streamline trade procedures and eliminate or reduce tariffs on a significant portion of goods traded between India and EFTA member countries: Iceland, Liechtenstein, Norway, and Switzerland.
Speaking at a press conference, Minister Goyal highlighted the agreement's potential to unlock vast trade and investment opportunities. He emphasized the complementary nature of the Indian and EFTA economies, believing the deal will foster job creation and economic growth, particularly for young people.
Key Sectors to Benefit
The TEPA covers various key sectors, including goods and services, information technology, audio-visual services, and skilled professionals. The pact prioritizes promoting investment and exports in these areas. Notably, India resumed negotiations with EFTA in October 2023, concluding them swiftly to solidify economic ties.
Strengthening Economic Relations
This deal marks a significant step in strengthening economic relations between India and EFTA. While bilateral trade stood at $18.65 billion in the last financial year, it has fluctuated in recent years. The agreement aims to bridge the trade deficit and position both regions for mutual economic advantage. It's important to note that India is also pursuing a separate free trade agreement with the European Union, a larger 27-nation bloc.
