DA Newsflash: India-EFTA Trade and Economic Partnership Agreement

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The India-European Free Trade Association (EFTA) has inked a momentous Trade and Economic Partnership Agreement (TEPA) on March 10th, 2024.?

The Union Cabinet has approved the signing of TEPA with EFTA States, comprising Switzerland, Iceland, Norway & Liechtenstein. This agreement marks a historic milestone as India embarks on its first-ever Free Trade Agreement (FTA) with four developed nations in Europe, a significant economic bloc.?

Key Points of the Agreement:?

1) Groundbreaking Commitments: For the first time in the history of FTAs, a binding commitment of $100 billion investment and creation of 1 million direct jobs in the next 15 years has been secured, heralding a new era of economic collaboration.?

2) Market Access and Tariffs: EFTA has committed to promoting investments to enhance India's foreign direct investments by USD 100 billion and generate 1 million direct employment opportunities. Tariff concessions cover a significant portion of India's exports, with EFTA offering 92.2% of its tariff lines and India reciprocating with 82.7% of its tariff lines.?

3) Services Sector Empowerment: TEPA stimulates services exports, particularly in sectors such as IT services, business services, and education services. Improved access to digital delivery of services, commercial presence, and entry of key personnel is facilitated.?

4) Intellectual Property Rights: The agreement upholds commitments related to Intellectual Property Rights (IPR) at TRIPS level, ensuring India's interests in generic medicines and addressing concerns related to patent evergreening.?

5) Sustainable Development: TEPA underscores India's commitment to sustainable development, inclusive growth, social development, and environmental protection, fostering transparency and efficiency in trade procedures.?

6) Boosting "Make in India": TEPA provides impetus to "Make in India" and Atmanirbhar Bharat initiatives by encouraging domestic manufacturing across various sectors, including infrastructure, pharmaceuticals, and renewable energy.?

7) Job Creation and Skill Development: The agreement is poised to create a large number of direct jobs for India's young workforce over the next 15 years, along with facilitating technology collaboration and access to cutting-edge innovations.

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