India will set in play its trade agreement with the European Free Trade Association (EFTA) bloc on October 1, marking the country’s first-ever trade pact with a European grouping, a government official said on Monday, September 29.
The four-nation EFTA bloc consists of Iceland, Liechtenstein, Norway, and Switzerland.
India and EFTA had signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024, but the deal’s implementation was delayed by procedural approvals in the member countries.
Indian government officials said the launch on October 1 would not only be ceremonial but also industry stakeholders are aware of the deal and well-positioned to take full advantage of it
The India-EFTA trade agreement is significant because it is the first with a European bloc and also the first where market access commitments are directly linked to investments, the official said.
India has agreed to cut tariffs to zero on 80-85 percent of goods imported from EFTA countries. In return, Indian exporters will enjoy duty-free access on 99 percent of goods in EFTA markets.