The trade agreement, TEPA, between India and the European four-nation organization EFTA has now come into effect. Under this agreement, India is expected to receive $100 billion in investment over the next 15 years and create approximately 1 million new jobs. Additionally, Swiss watches, chocolates, and premium products will become cheaper, while some agricultural commodities have been excluded from this deal.
India and EFTA countries mega deal: The historic trade agreement, TEPA, between India and the EFTA organization, comprising the four European nations of Switzerland, Norway, Iceland, and Liechtenstein, has now officially come into effect. This deal promises India $100 billion in investment and 1 million jobs over the next 15 years. Under the agreement, expensive foreign products such as Swiss watches and chocolates will become cheaper, while milk, soy, and some agricultural commodities have been excluded. Furthermore, new opportunities will open up between India and EFTA countries in the services sector.
$100 Billion Investment and a Boom in Employment
Under this agreement, India will receive a total investment of $100 billion over the next 15 years. Of this, $50 billion will be invested in the first 10 years, and the remaining $50 billion in the subsequent 5 years. The government estimates that this investment will create approximately 1 million new jobs in India. These jobs will be available across various sectors such as IT, healthcare, manufacturing, and services.
The most significant aspect is that if EFTA countries fail to invest within the stipulated time, India will have the right to withdraw or modify the duty exemptions granted to them. This condition further strengthens India's position.
Which Countries are Members of EFTA
EFTA, which stands for European Free Trade Association, comprises four countries: Switzerland, Norway, Iceland, and Liechtenstein. The TEPA agreement between India and EFTA countries was signed on March 10, 2024. This agreement has now formally come into effect, and its impact will gradually become visible in the market.
Direct Benefits for Common People
The impact of this deal will also reach ordinary consumers in India. Until now, foreign goods were subject to heavy customs duties, making them very expensive. However, after the implementation of TEPA, the duties on these products will be gradually eliminated.
Consequently, renowned Swiss watches, premium chocolates, biscuits, and certain specialized kitchen products will now be available to Indian consumers at lower prices. This is good news for those who have a fondness for foreign brands.
However, the government has excluded certain items from this agreement, including milk, soy, coal, and some agricultural products. The reason for this exclusion is that including these products could have adversely affected Indian farmers and domestic industries.
Significant Opportunities in the Services Sector Too
This agreement is not limited to products but also encompasses the services sector. India has granted EFTA countries access to 105 sectors, including accounting, computer services, health, and distribution.
In return, EFTA countries have also provided India with opportunities in their markets. This will benefit Indian professionals, with more job opportunities abroad in sectors such as IT, healthcare, and accounting.
New Avenues for Investment and Trade
TEPA will open new avenues for investment and trade between India and Europe. This will not only benefit India with substantial investment but also provide Indian companies with easier access to European markets.
This deal will also benefit small and medium-sized enterprises, as they will be able to explore new markets for their products and services in European countries. Furthermore, the Indian IT and healthcare sectors will get a golden opportunity to establish a b foothold in Europe.
