The much-awaited free trade agreement between India and the four-nation European bloc EFTA is expected to come into force by September this year, commerce and industry minister Piyush Goyal announced on Monday.
The trade and economic partnership agreement (TEPA), signed on 10 March 2024, marks a significant milestone in India’s trade diplomacy. Under the deal, India has secured a commitment of $100 billion in investments over the next 15 years from the European Free Trade Association (EFTA), which comprises Iceland, Liechtenstein, Norway, and Switzerland.
Speaking to reporters during his official visit to Switzerland, Goyal confirmed, “By September, TEPA will be operationalised. It will enter into force by September.”
The agreement has already been cleared by the Parliaments of all four EFTA countries, with an objection window in Switzerland open until 10 July, the minister said, cited by PTI.
The agreement is expected to slash or eliminate import duties on a range of European goods, including Swiss watches, chocolates, and cut and polished diamonds, benefiting Indian consumers and industries alike.
During his visit, Goyal engaged with leaders and business representatives, holding one-on-one discussions with over a dozen Swiss firms. He said most companies expressed strong interest in investing in India. Swizz companies, especially, have shown interest in sectors like pharmaceuticals, cybersecurity, and machinery manufacturing.
“Lots of excitement here for India,” Goyal said.
During his bilateral meetings, he also encouraged companies to hold their board meetings in India, allowing them to witness the country's investment potential firsthand.
He noted that 100 per cent foreign direct investment is permitted in machinery manufacturing in India, which could help reduce the country’s reliance on machine imports from China.
The minister also offered an update on other trade negotiations, stating that India is in active discussions with New Zealand, Chile, Peru, Oman, and the European Union. A deal with the EU could be concluded “faster than expected,” he hinted, alongside a possible finalisation of a bilateral investment treaty.
Reflecting on the 11-year tenure of the NDA government, Goyal said FTAs have played a crucial role in positioning India as a top destination for global investment.
“The world today recognises that the best place to do business is India,” he said. “India is also a preferred destination for services.”
He highlighted the growing presence of global capability centres (GCCs) in India, with nearly 2,000 already established. On manufacturing, he pointed to the success of the Production-Linked Incentive (PLI) scheme, which has boosted local content in air conditioner manufacturing from 20 per cent to 65 per cent.
All of this has been made possible because of the “good governance” of the last 11 years, he said.
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