Key Points

According to a government release, this is India's first Free Trade Agreement with four developed European nations: Switzerland, Norway, Iceland, and Liechtenstein. It also promises to bring in USD 100 billion in investments and create one million direct jobs over the next fifteen years.

Under the agreement, the EFTA nations have pledged to attract USD 50 billion in investments within the first ten years and an additional USD 50 billion over the next five years. These investments are expected to focus on sectors such as renewable energy, life sciences, digital transformation, and engineering. To facilitate these, a dedicated India-EFTA Desk has been set up as a single-window platform for investors.

The TEPA provides balanced market access between both sides. EFTA has offered tariff concessions on 92.2 per cent of tariff lines, covering 99.6 per cent of India's exports. In return, India has granted access on 82.7 per cent of tariff lines, representing 95.3 per cent of EFTA's exports, while protecting sensitive sectors like dairy, soya, coal, and select agricultural products.

In services, where India already holds a strong global position, the pact offers wider access in 105 sub-sectors. The agreement also includes Mutual Recognition Agreements in key professions, such as nursing, accountancy, and architecture, which will facilitate the easier movement of skilled workers and professionals between India and EFTA countries.

The pact's intellectual property provisions reaffirm both sides' commitment to innovation while maintaining India's flexibility to protect affordable medicines. The release noted that this balance strengthens trust and cooperation between "India's skilled workforce and Europe's technology ecosystems".

Agriculture, marine products, and manufacturing are expected to experience significant growth under the agreement. Indian exports of coffee, tea, machinery, and processed foods are likely to see a boost, as EFTA countries eliminate or reduce tariffs on most of these goods. Engineering, textiles, electronics, and chemical industries will also benefit from improved market access and simplified trade procedures.

The release stated that TEPA is more than just a trade deal; it is a partnership founded on confidence and mutual growth. By combining India's expanding industrial base with EFTA's technological expertise, the pact is poised to usher in a new era of cooperation centred on sustainability, innovation, and job creation.

The release said this is the first time any FTA signed by India includes binding commitments on investment and job creation.

- ANI