India and the European Free Trade Association (EFTA) are set to sign a landmark Trade and Economic Partnership Agreement (TEPA), marking India’s first trade deal with any European nation or bloc. The agreement, slated for formalization, encompasses a substantial US$100 billion investment commitment over 15 years, intricately linked to creating one million jobs in India. This investment initiative will be integrated into the proposed trade agreement as part of the investment chapter, reflecting a strategic convergence between trade and economic development goals.
Under TEPA, India and the EFTA nations Iceland, Switzerland, Norway, and Liechtenstein aim to provide duty-free access across various sectors, offering mutual benefits. However, India’s trade deficit with EFTA countries, reaching US$14.8 billion in the fiscal year 2023, underscores the need for strategic considerations amidst the positive prospects. The resumption of negotiations after a hiatus and the commitment to fostering bilateral trade and investment relations highlight the significance of this momentous agreement.
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