India-European Free Trade Association Free Trade Agreement
The trade agreement between India-European Free Trade Association (EFTA) will give a boost to commerce, investment and job creation.
The Ministry of Commerce and Industry has discussed with the representatives of EFTA countries the modalities to move forward towards concluding a Comprehensive Trade and Economic Partnership Agreement (TEPA).
TEPA is a Free Trade Agreement (FTA) between India and the member countries of EFTA. EFTA includes Iceland, Liechtenstein, Norway and Switzerland.
A Free Trade Agreement (FTA) is an arrangement between two or more countries or trading groups. It primarily provides for the reduction or elimination of customs and non-tariff barriers to most trade between related parties. Also eases norms to promote trade and investment in services.
In this sense, TEPA can provide significant economic benefits. These benefits include creation of integrated and resilient supply chains, increased trade and investment flows, job creation, economic growth, etc.
EFTA is an intergovernmental organization established to promote and strengthen free trade.
EFTA countries are not part of the European Union (EU). This group was established as an alternative for countries that did not want to join the European Union.
India’s trade with EFTA
- India is the 9th largest trading partner of EFTA.
- India’s exports to EFTA countries were estimated at US$ 1.67 billion in 2022-23. It was US $ 1.74 billion in the year 2021-22.
- Imports to India from EFTA countries to be USD 15 billion in 2022-23. It was US$ 25.5 billion in the year 2021-22.
Source – Indian Express
