India-EFTA Trade Deal to Boost Investment and Jobs, Effective October 1: Piyush Goyal

The landmark India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) is set to come into effect on October 1, Union Commerce and Industry Minister Piyush Goyal announced today. The significant update was delivered during his address at the 'Creating Global Impact Towards Viksit Bharat' session, organized by ASSOCHAM in Mumbai.

"All countries have now ratified. Lodged their document with the repository, which was Norway, and from the first of October, EFTA will come into effect," Minister Goyal confirmed, marking a crucial step forward for India's trade relations with the four EFTA member states: Iceland, Liechtenstein, Norway, and Switzerland.

The comprehensive TEPA was originally signed on March 10, 2024, establishing a robust framework for trade relations built on shared principles such as a commitment to sustainable development, good corporate governance, and corporate social responsibility. EFTA, an intergovernmental organization founded in 1960, aims to promote free trade and economic integration among its four member states.

A cornerstone of this agreement is EFTA's substantial commitment to India. The bloc has pledged to promote investments aimed at increasing the stock of foreign direct investments by an impressive USD 100 billion in India over the next 15 years. This influx of capital is projected to facilitate the generation of 1 million direct jobs across the nation, a significant boost to India's employment landscape. It's important to note that these investment commitments specifically exclude foreign portfolio investment.

The TEPA also incorporates and builds upon the WTO Agreement on Trade Facilitation, including provisions aligned with relevant international standards and agreements. Among the EFTA countries, Switzerland stands as India's largest trading partner, followed by Norway.

During the same event, Minister Goyal reiterated India's overarching philosophy on international trade agreements. He firmly stated that India would only enter into such agreements if they unequivocally serve the country's national interests, highlighting a strategic and cautious approach to global trade partnerships.

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