India European FTA free trade agreement to be implemented from Oct 1: Piyush Goyal

The free trade agreement between India and the European Free Trade Association (EFTA) will be implemented from October 1, Commerce and Industry Minister Piyush Goyal said on Saturday. The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

Under the pact, India has received an investment commitment of USD 100 billion over 15 years from the EFTA bloc, which includes Iceland, Liechtenstein, Norway, and Switzerland. The agreement allows several products such as Swiss watches, chocolates, and cut and polished diamonds to enter India at lower or zero duties.

The investment commitment is divided into USD 50 billion within 10 years after the agreement’s implementation and another USD 50 billion in the following five years. This pledge is expected to create 1 million direct jobs in India and is the first of its kind in any trade deal signed by India so far.

The agreement took almost 16 years to conclude and is significant for India as it opens its markets to several products from the EFTA nations. Switzerland is India’s biggest trading partner within the bloc, while trade volumes with the other three countries remain low.

India is offering 82.7 per cent of its tariff lines, covering 95.3 per cent of EFTA exports, which include over 80 per cent gold imports. Indian consumers will benefit from access to high-quality Swiss products like watches, chocolates, biscuits, and clocks at lower prices as customs duties on these goods will be phased out over 10 years.

In the services sector, India has offered 105 sub-sectors to EFTA, including accounting, business services, computer services, distribution, and health. India has secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein, and 110 from Iceland. Key areas expected to benefit include legal, audio-visual, research and development, computer, accounting, and auditing services.

The pact also provides an opportunity for Indian exporters to integrate into European Union markets. Over 40 per cent of Switzerland’s global services exports go to the EU, allowing Indian companies to use Switzerland as a base to extend their market reach to the EU.

India-EFTA two-way trade stood at USD 24.4 billion in 2024-25.