India-EFTA Free Trade Deal To Take Effect From 1 October; $100 Billion Investment Potential Over 15 Years

The Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA) will officially come into effect on 1 October, Union Commerce and Industry Minister Piyush Goyal announced on Saturday, as reported by The New Indian Express.

The trade pact between India and four European nation bloc — was signed on 10 March 2024, following negotiations that began in 2008.

The EFTA is a regional trade organization and free trade area consisting of four European states: Iceland, Liechtenstein, Norway and Switzerland.

The agreement is expected to open up significant market access for Indian goods and services, while potentially unlocking $100 billion in investments from EFTA countries over the next 15 years.

"India-EFTA TEPA to come into effect from 1st October," Goyal said in a post on X.

Tariff Reductions and Market Access

The agreement provides duty-free or reduced-tariff access to 99.6 per cent of Indian exports to EFTA countries—Switzerland, Norway, Iceland, and Liechtenstein.

In return, India will eliminate or reduce tariffs on 95.3 per cent of imports from EFTA nations.

However, the pact excludes primary agricultural goods from tariff concessions, and maintains the existing 15 percent duty on gold, which makes up 80 per cent of EFTA’s exports to India.

Boost for Professional Services and IP Protections

In addition to goods, the agreement lays out provisions for mutual recognition in professional services such as nursing, chartered accountancy, and architecture—potentially expanding job opportunities for Indian professionals in EFTA member states.

On the sensitive front of intellectual property rights, both parties have agreed to align with the TRIPS (Trade-Related Aspects of Intellectual Property Rights) standards, while India’s concerns over generic drugs and patent evergreening were addressed, according to officials.

A Forward-Looking Trade Milestone

The India-EFTA TEPA (Trade and Economic Partnership Agreement) represents more than just tariff cuts. It sets the tone for India's evolving trade diplomacy, showcasing the country’s ability to balance economic liberalisation with the protection of strategic domestic interests such as agriculture and affordable medicines.

As trade relationships diversify beyond traditional partners, the EFTA deal reinforces India's commitment to building inclusive, investment-driven agreements that benefit both goods producers and service professionals.

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