India Trade Agreement EFTA to help diversify exports and bring investments

It is expected that the European Free Trade Association agreement in India, which enters into force from today, is not only foreign trade in the country but also the confidence of exporters, who were struggling with the high definitions imposed by the United States.

With India’s work on multiple free trade agreements (FTAS), activating this trade agreement will help diversify its export markets, and political observers said it would be a good factor.

The Trade and Economic Partnership Agreement (TEPA) between India and the Switzerland block from Switzerland, Norway, Liechtenstein and Iceland, which was signed in March of last year after more than 16 years of discussions, for the first time of the commitment related to the establishment of direct jobs and investments with the aim of aiming at $ 100 billion from FDI in India over 15 years in the country in the country in the country.

Under the agreement, Efta also provided 92.2 % of tariff lines that include 99.6 % of India’s exports as well as all non -agricultural products. India’s offer to Efta covers 82.7 % of tariff lines, which represents 95.3 % of EFTA exports.

India is the fifth largest commercial partner in EFTA, with a value of about 23 billion dollars. Indian exporters are expected to enjoy sectors such as machines, organic chemicals, textiles, and processed foods to reach EFTA markets greatly despite the TEPA. For Indian consumers, the prices of wine, olives, avocado, apricots, coffee and chocolate will decrease over the years, although Swiss cheese has been removed from the agreement.

Anant Swarrup, chief consultant, commercial policy, EY India, noted that the total annual EFTA imports (goods and services) are estimated at 430 billion dollars, as the current share of India from this market still highlights significant growth capabilities.

“India will represent most sectors such as medicines, organic chemicals, food processing, engineering commodities, information technology services, and professional services. These sectors will witness expanded to reach markets and reduce customs tariffs, enable Indian exporters to benefit from high -value European markets and attract significant investments in local manufacturing.”

According to the analysis conducted by the Confederation of the Indian textile industry, India was the seventh largest supplier of fabric and clothing elements to Switzerland in 2024, which represents 3.5 % of the total fabric and clothing imports in Switzerland of the world. During the year 2024, Switzerland imported 367.63 million dollars from India.

“Tepa will be easier as part of our diversification strategy,” said City president Ashwin Chandran.