India-EFTA trade pact a defining moment in India's economic engagement with Europe

New Delhi, Oct 2 (IANS) The India–EFTA Trade and Economic Partnership Agreement (TEPA), that came into force with $100 billion investment objective and one million direct jobs, is a defining moment in India’s economic engagement with Europe, which represents “a trusted partnership between friends” built on mutual respect and sensitivities.

The pact provides wider goods and services access across Switzerland, Norway, Iceland and Liechtenstein.

According to Commerce Minister Piyush Goyal, it is the first trade agreement to incorporate a firm investment commitment, thereby balancing interests and ensuring fairness between partners.

At an event here, he underscored that the entire population of the four EFTA countries is less than that of Mumbai city alone, yet the partnership is driven by the “big heart and tremendous potential” of the EFTA region.

Goyal emphasised the auspicious timing of the agreement, noting that its commencement on Navami, coinciding with Vijaya Dashami, symbolises prosperity, clarity and victory of good over evil.

He described TEPA as a beacon of stability and certainty amid global trade volatility, ambiguity and disruption, underlining the wide-ranging opportunities opened by the agreement in diverse areas.

These include life sciences, clean energy, precision engineering and food processing, Technology, artificial intelligence, accountancy and nursing, education, audio-visual services, culture, tourism and recreation and geothermal energy where India looks forward to working with Iceland; shipbuilding, repair, container manufacturing and maritime services in partnership with Norway; and innovation, R&D and advanced manufacturing in collaboration with Swiss and Liechtenstein companies.

The minister highlighted the role of India’s competitive cost structures, citing that data costs in India are only 3 per cent of those in the US and less than 10 per cent of the global average.

He underlined the emergence of nearly 2,500 global capability centres in India that support Fortune 500 companies worldwide.

The Minister recalled the legacy of Swiss companies like ABB and Nestle in India and illustrated how India has not only provided a strong market base but has also become a hub for global expansion.

He pointed out that the high price-to-earning ratios of companies like Nestlé India and ABB India reflect the immense potential and confidence of markets in India’s future growth.

Inviting businesses from EFTA nations, Goyal assured them of India’s open, transparent and investor-friendly environment, with 100 per cent FDI allowed in almost all sectors of interest.

Goyal underlined that TEPA is not merely about tariff reduction or investment commitment, but about establishing a stable, predictable and trusted framework that boosts investor confidence, reduces costs of uncertainty, and signals to the world that India and EFTA are committed to sustainable growth.

Commerce Secretary Rajesh Agrawal said that the operationalisation of the India-EFTA Trade and Economic Partnership Agreement (TEPA) is a strong signal of collective wisdom and will to strengthen free and fair trade.

He observed that the agreement marks not just a trade arrangement but the beginning of a new era of shared growth, innovation and prosperity. Emphasising India’s emergence as the world’s fourth largest economy on course to becoming the third, he noted that the investment commitments under TEPA reflect global confidence in the India story.

—IANS

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