What are the Impacts of the India-EFTA Trade Pact Set to Start on October 1?
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Synopsis
The India-EFTA Trade and Economic Partnership Agreement, commencing on October 1, is poised to transform trade relations, pledging $100 billion in investments and creating a million jobs. Discover how this landmark agreement will foster innovation and collaboration across key sectors.
Key Takeaways
- India's first FTA with four developed European nations.
- $100 billion investment commitment.
- Creation of 1 million direct jobs over 15 years.
- Improved market access for goods and services.
- Focus on sustainable development and Make in India initiatives.
New Delhi, Sep 30 (NationPress) As the India-European Free Trade Association (EEFTA) Trade and Economic Partnership Agreement (TEPA) takes effect on October 1, the India-EFTA Desk has been launched as a single-window platform aimed at facilitating EFTA investments in sectors such as renewable energy, life sciences, engineering, and digital transformation. This initiative is designed to promote joint ventures, collaborations among SMEs, and technology partnerships, as stated by the government on Tuesday.
The TEPA marks the establishment of India’s first Free Trade Agreement with four developed European nations, pledging $100 billion in investments and the creation of 1 million direct jobs over a span of 15 years.
In 2024, India’s exports to EFTA were valued at $72.37 million, accounting for 0.41% of EFTA's total imports. This agreement is anticipated to lower tariff barriers and enhance India’s market share in essential commodities.
The TEPA is set to improve market access for both goods and services, fortify intellectual property rights, and promote sustainable and inclusive development while supporting initiatives like Make in India and Atmanirbhar Bharat.
As per the Ministry of Commerce and Industry, the agreement is structured into 14 chapters, focusing on areas including market access for goods, rules of origin, trade facilitation, and other legal provisions.
The EFTA’s offer under the TEPA encompasses full market access for 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP).
The sensitivity regarding Production Linked Incentives (PLI) in sectors such as pharma, medical devices, and processed food has been acknowledged in the offers extended.
Under the TEPA, the EFTA has provided concessions on 92.2% of tariff lines, which includes 99.6% of India’s exports. This also covers all non-agricultural products along with tariff reductions on PAP.
India's proposal to the EFTA includes 82.7% of tariff lines, representing 95.3% of EFTA's exports.
Notably, over 80% of these imports consist of gold, with no changes in the effective duty on gold. Sensitive sectors like pharma, medical devices, processed food, dairy, soya, coal, and certain agricultural products have been safeguarded.
The TEPA opens up greater possibilities in sectors such as IT, business services, cultural services, education, and audio-visual services. It ensures high standards for intellectual property rights consistent with TRIPS commitments, particularly with Switzerland. India's concerns regarding generic medicines and patent evergreening have been thoroughly addressed, according to the ministry.
Point of View
It is clear that the India-EFTA TEPA is a significant step towards enhancing economic cooperation with developed nations. This agreement not only aims to increase investments but also focuses on sustainable development and technology transfer, aligning with national goals. The commitments made in this pact could revitalize various sectors and elevate India's position in global trade.
NationPress
30/09/2025
Frequently Asked Questions
What is the India-EFTA TEPA?
The India-EFTA TEPA is a Trade and Economic Partnership Agreement that aims to enhance trade relations between India and the European Free Trade Association, focusing on investments and job creation.
When does the TEPA come into effect?
The TEPA will come into effect on October 1.
What are the expected benefits of the TEPA?
The agreement is expected to boost investments by $100 billion and create 1 million direct jobs, while also improving market access and reducing tariffs.
