Industry body CII welcomes India-EFTA trade agreement

India-EFTA Trade Deal: The Confederation of Indian Industry (CII) has welcomed India's newly established trade agreement with the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland.

Chandrajit Banerjee, Director General, CII has voiced support for the newly formalised Trade and Economic Partnership Agreement (TEPA) between India and EFTA.  

"Indian industry strongly welcomes the landmark Trade and Economic Partnership Agreement with EFTA countries concluded by the Government. The EFTA countries are world leaders in sectors such as energy, blue economy, precision engineering, and food processing, amongst others. By opening new opportunities for collaboration, CII believes that this agreement ushers in multidimensional gains to Indian industry," Banerjee said.

"It would elevate trade, promote technology and knowledge transfer, and encourage investments. Improved market access for goods will boost India’s export potential to EFTA markets and greatly expand employment opportunities, especially with the historic $100 billion committed investment from EFTA region," Banerjee added.

Integration and cooperation

The TEPA, inked by Piyush Goyal, Minister of Commerce & Industry, along with representatives from EFTA member states, aims to deepen economic integration and cooperation. Central to the agreement are provisions aimed at streamlining trade processes, including simplified customs procedures and enhanced market access. These measures are expected to stimulate increased trade and investment flows, ultimately driving job creation and economic growth in both India and EFTA nations.

Banerjee's endorsement of the TEPA highlights the Indian industry's enthusiasm for the agreement's potential to fuel growth and innovation. He highlighted the historic commitment of $100 billion in investment from the EFTA region, which is poised to further boost India's export potential and create employment opportunities.

Trade enhancement impact

The agreement is anticipated to provide a major boost to trade and investment opportunities. The agreement is expected to enhance India's exports of pharmaceuticals, garments, chemicals, and machinery, while also attracting investments in key sectors such as automobiles, food processing, railways, and financial sector. With a total two-way trade estimated at $25 billion in 2023, India stands to benefit from improved market access to the EFTA nations.

Swiss manufacturers, particularly those in the machinery, luxury items such as watches, and transport sectors, are expected to benefit from the pact, with opportunities for investment in India's railways. However, negotiations faced hurdles, with India rejecting demands for provisions on "data exclusivity" and largely keeping "sensitive" farm products and gold imports out of the pact. While the agreement signifies a step forward in India-Swiss relations, challenges remain, including Switzerland's policy of tariff-free entry for industrial goods from any country and complexities in exporting farm produce to Switzerland.