Union Minister of Commerce & Industry Piyush Goyal addresses the media on the signing of the India-EFTA Trade & Economic Partnership Agreement (TEPA) alongside with his counterparts in New Delhi on March 10, 2024
| Photo Credit: ANI
India signed a free commerce pact on March 10 with a bunch of European nations — Switzerland, Norway, Iceland and Liechtenstein — committing to scale back tariffs, whereas New Delhi will obtain $100 billion in investments over the subsequent 15 years.
India and the members of the European Free Trade Association (EFTA) held 21 rounds of talks over 16 years to clinch the broad-based Trade and Investment Agreement. Here are key information about the commerce pact:
Boost to commerce, funding
India expects that the pact, following offers with the UAE and Australia, will enhance exports of prescription drugs, clothes, chemical substances and equipment whereas attracting investments in cars, meals processing, railways and the monetary sector.
India is the EFTA’s fifth-largest buying and selling companion after the European Union, the United States, Britain and China, with complete two-way commerce touching $25 billion in 2023, its commerce ministry estimates. Its exports to the EFTA touched $2.8 billion and imports have been about $22 billion throughout that interval. With a inhabitants of 13 million and a mixed GDP of greater than $1 trillion, the EFTA nations are the world’s ninth-largest merchandise dealer and its fifth largest in business providers.
Swiss firms to profit
Swiss producers of equipment, luxurious gadgets like watches and transport are anticipated to profit, the Swiss authorities has mentioned. India has invited Swiss transport firms to put money into the Railways. The pact permits EFTA international locations the alternative to export processed meals and drinks, electrical equipment, and different engineering merchandise to a possible market of 1.4 billion individuals at decrease tariffs. The pharmaceutical and medical gadgets business inside the bloc might additionally profit.
India-Swiss relations
India hopes the pact will enhance commerce ties with Switzerland, the greatest companion in the EFTA. India is its fourth-largest buying and selling companion in Asia and the largest in South Asia.
More than 300 Swiss firms similar to Nestle, Holcim, Sulzer, and Novartis, aside from banks similar to UBS function in India, whereas Indian IT majors TCS, Infosys and HCL work in Switzerland.
No to information exclusivity
India earlier rejected the 4 nations’ demand for the pact to incorporate provisions on “data exclusivity” that might make it tough for its drug firms to supply generic variants of the off-patent medication, Indian officers mentioned. India and the EFTA additionally agreed to largely hold “sensitive” farm merchandise and gold imports out of the pact.
Limitations of the pact
Switzerland’s coverage of tariff-free entry for all industrial items from any nation, with impact from January 1, would have an effect on advantages to Indian firms, Global Trade Research Initiative, a suppose tank primarily based in New Delhi, mentioned in a report. India is more likely to hold dealing with difficulties in exporting farm produce to Switzerland because of a fancy net of tariffs, high quality requirements, and approval necessities, analysts warned.
