India inks TEPA with EFTA to boost trade & investment

Spanning 14 chapters, the TEPA focuses on various critical areas including goods market access, rules of origin, trade facilitation, and investment promotion, alongside intellectual property rights and sustainable development. This comprehensive agreement will unlock new avenues for trade and investment, positioning EFTA as a crucial economic bloc for India within Europe, alongside the EU and the UK, the ministry of commerce and industry said in a press release.

A notable aspect of the agreement is EFTA's commitment to fostering investments in India, aiming to increase foreign direct investment by $100 billion within the next 15 years. This ambition is set to generate 1 million direct jobs in India, excluding foreign portfolio investments. This move marks a historic first in free trade agreements, establishing a legal framework for targeted investment and job creation.

Under the terms of TEPA, EFTA will open up 92.2 per cent of its tariff lines, covering 99.6 per cent of India’s exports, while India will offer 82.7 per cent of its tariff lines, encompassing 95.3 per cent of EFTA’s exports. India has also committed to opening 105 sub-sectors, securing reciprocal commitments from the EFTA states in various sectors.

The agreement underscores India’s dedication to sustainable development, transparency in trade procedures, and fostering an environment conducive to domestic manufacturing. It notably supports the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, encouraging manufacturing in key sectors like manufacturing and transport and logistics.

Moreover, TEPA paves the way for India's deeper integration into European markets. This strategic positioning could serve Indian companies looking to expand their reach into the EU market. Ultimately, TEPA is set to significantly influence India's economic landscape, driving direct employment and manufacturing growth over the next 15 years.

"TEPA is a modern and ambitious trade agreement. For the first time, India is signing FTA with four developed nations—an important economic bloc in Europe. For the first time in history of FTAs, binding commitment of $100 billion investment and 1 million direct jobs in the next 15 years has been given. The agreement will give a boost to Make in India and provide opportunities to young and talented workforce. The FTA will provide a window to Indian exporters to access large European and global markets," said Piyush Goyal, minister of commerce and industry, and textiles.

Fibre2Fashion News Desk (DP)