India's Landmark FTA with EFTA Promises Growth and Opportunities
India's new free trade agreement with EFTA nations, effective from Wednesday, aims to enhance bilateral trade and investment. With a commitment of $100 billion from EFTA over 15 years, it promises job creation and sector benefits. Sensitive sectors are protected while Indian exports gain competitive advantages.

- Country:
- India
India's landmark free trade agreement with the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland, officially comes into effect on Wednesday. This agreement, signed on March 10, 2024, is designed to bolster bilateral commerce and attract investment between India and the four EFTA nations.
The agreement presents a significant opportunity for India, with EFTA members committing to invest $100 billion over the next 15 years, projected to create a million direct jobs in the country. This commitment focuses on long-term capital for enhancing productive capacity, excluding foreign portfolio investment. Should the bloc fail to meet these commitments, India retains the option to temporarily withdraw customs duty concessions on EFTA goods.
The trade pact covers 92.2% of tariff lines or product categories, particularly benefiting Indian exports like machinery and textiles, while protecting sensitive sectors such as pharmaceuticals and agriculture. Indian consumers will also see reduced prices on Swiss wines, watches, and chocolates as part of the deal, which progressively slashes tariffs on various products over a decade.
(With inputs from agencies.)
- READ MORE ON:
- India
- FTA
- EFTA
- investment
- trade
- commerce
- tariffs
- exports
- Indian market
- job creation
ALSO READ
Clashing Policies: The Impact of Trump's Tariffs and Visa Fees on U.S.-India Trade Relations
EU to Slash Steel Import Quotas, Raise Tariffs in New Plan
Navigating Trade Tensions: Japan's Trailblazing Tariff Deal with the US
India-Europe Free Trade Agreement Sparks Economic Optimism
Asia's Factory Struggles: Impact of Tariffs and US Slowdown