India Unveils New Trade Horizons with EFTA Agreement Taking Effect

The Free Trade Agreement between India and EFTA's four nations is set to take effect from September. The TEPA, signed in March 2024, promises a $100 billion investment in 15 years from the bloc, easing trade barriers for products like Swiss watches. India's Commerce Minister Piyush Goyal anticipates increased European investments in India.

The free trade agreement (FTA) between India and the European Free Trade Association (EFTA)—comprising Iceland, Liechtenstein, Norway, and Switzerland—will become effective by September, announced Commerce and Industry Minister Piyush Goyal on Monday.

Signed on March 10, 2024, the Trade and Economic Partnership Agreement (TEPA) aims to boost economic collaboration with an expected $100 billion investment in India over the next 15 years. It also reduces trade barriers, allowing Swiss watches, chocolates, and cut diamonds into India at competitive rates.

Piyush Goyal's official visit to Switzerland involved meetings with over a dozen companies, with many expressing intent to invest in Indian sectors such as pharma, cybersecurity, and machinery manufacturing. India is also negotiating broader FTAs with countries like New Zealand, Chile, and the European Union, potentially accelerating future deals.

(With inputs from agencies.)