India-EFTA Free Trade Agreement comes into force, to bring $100 billion investment in 15 years

New Delhi (The Uttam Hindu): The Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA), a group of four major European countries—Switzerland, Norway, Iceland, and Liechtenstein—came into effect on October 1. This is India's first agreement with these countries.

Under this agreement, India is expected to receive investments worth $100 billion (approximately Rs 8.86 lakh crore) over the next 15 years. This will create approximately 1 million new jobs in the country. EFTA provides tariff exemptions on 99.6 percent of India's exports (92% of tariff lines). India has granted concessions on 82.7 percent of tariff lines, although pharmaceuticals, medical devices, dairy, processed foods, soy, coal, and some agricultural products are protected.

There is no change in the gold tariff, as it accounts for over 80 percent of India's imports from EFTA. The agreement will open up new opportunities in IT, education, business, and audio-visual services. Indian professionals will also benefit in fields such as nursing, chartered accountancy, and architecture.

Union Commerce and Industry Minister Piyush Goyal described the agreement as historic, saying it represents an important milestone in India's foreign trade policy. He said India is now pursuing a free trade agreement with European countries with strength and confidence. This will provide greater opportunities for Indian exporters, industries, and service providers and create employment for millions of people.