Historic Free Trade Agreement: India and EFTA Forge Landmark Pact
A new free trade agreement between India and the European Free Trade Association (EFTA) will come into effect on October 1. It includes legally binding terms on trade and sustainable development. The agreement, notable for its $100 billion investment commitment, enhances market access for Swiss goods.
- Country:
- India
In a historic move, India and the European Free Trade Association (EFTA) have finalized a free trade agreement set to commence on October 1, incorporating legally binding provisions on trade and sustainable development.
The pact, known as the Trade and Economic Partnership Agreement (TEPA), was signed on March 10, 2024, and marks the first time India has included such provisions in a trade deal. It secures a significant $100 billion investment from EFTA members, which include Iceland, Liechtenstein, Norway, and Switzerland.
This groundbreaking investment is expected to create one million direct jobs in India, while also lowering or eliminating duties on Swiss exports such as watches, chocolates, and diamonds. Moreover, the agreement strengthens legal certainty and enhances market access for Swiss goods, covering 94.7% of existing exports excluding gold.
(With inputs from agencies.)
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