The India-EFTA trade pact is set to transform India’s trade and investment landscape. It is expected to drive $100 billion in investments and boost 99.6% of Indian exports. Known as the Trade and Economic Partnership Agreement (TEPA), the deal strengthens India’s ties with the European Free Trade Association (EFTA) countries—Switzerland, Iceland, Norway, and Liechtenstein.
During his visit to Norway, Commerce Secretary Sunil Barthwal emphasised the immense opportunities this pact offers. India is poised to become the third-largest global economy within four years. TEPA marks a significant step toward achieving this milestone.
India-EFTA Pact: A major boost for exports
The India-EFTA trade pact provides unparalleled market access. EFTA has reduced tariffs on 92.2% of its products, benefiting 99.6% of Indian exports. Key export sectors expected to thrive include:
- Green hydrogen
- Renewable energy
- Textiles
- Seafood
- Mining
- Information technology
India, in turn, offers tariff reductions on 82.7% of its products. This ensures mutual growth and creates a balanced trade framework.
$100 Billion investment opportunity
The pact also opens doors to $100 billion in investments. Norway, as a key partner, anticipates strengthening its economic ties with India. Strategic areas for investment include:
- Renewable energy projects
- Advanced shipping technologies
- Green consumer goods
Additionally, the agreement promotes the mobility of Indian professionals. This will enhance bilateral relations and contribute to various industries worldwide.
More jobs and skill development
TEPA will create direct jobs for India’s growing workforce. Over the next 15 years, it will also boost vocational and technical training facilities. These initiatives will help Indian workers align with global standards and secure high-growth opportunities.
Conclusion
The India-EFTA trade pact stands as a strategic partnership. It not only boosts exports but also attracts investments and creates jobs. As India strengthens its position as a global economic leader, TEPA will play a vital role in driving sustainable growth and fostering closer ties with EFTA nations.
