India-EFTA trade pact to unlock $100 billion investment and boost exports

India seeks to accelerate TEPA implementation during the commerce secretary’s visit to Norway

The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) is poised to significantly boost India’s export potential and attract $100 billion in investment, the government announced on Saturday.

The deal, signed earlier this year in March, has the potential to enhance market access for Indian exports to EFTA countries, covering an impressive 99.6% of the nation’s exports.

This announcement came during the visit of Sunil Barthwal, Secretary of the Department of Commerce, to Norway on Friday. Barthwal highlighted the immense trade and investment opportunities available to Norwegian industries as India’s economy continues its rapid rise.

From being the fifth-largest economy globally, India is set to become the third-largest within the next three to four years, creating new avenues for economic collaboration.

During his visit, Barthwal met with Tomas Norvoll, State Secretary of Norway’s Ministry of Trade, Industry, and Fisheries, to discuss the promotion of trade and investments, as well as the mobility of Indian professionals.

The talks also focused on revitalizing existing institutional mechanisms and the next steps for the ratification of the TEPA.

Barthwal also met with key figures, including Cecilie Myrseth, Norway’s Minister of Trade and Industry, and Jan Christian Vestre, the country’s Minister of Health and Care Services. The visit featured in-depth discussions with Norwegian business stakeholders, including representatives from the Norwegian Chamber of Commerce (NHO), Innovation Norway, the Shipbuilders Association, Raeder Bing Law Firm, and leaders from major Norwegian companies.

These discussions spanned various sectors such as renewable energy, shipping, green hydrogen, consumer goods, textiles, seafood, mining, and information technology, all of which present mutual interest for both nations.

The TEPA, signed between India and four developed nations — Switzerland, Iceland, Norway, and Liechtenstein — strengthens economic ties with the EFTA, a significant economic bloc in Europe. This agreement aligns with India’s ‘Make in India’ initiative and promises to create abundant opportunities for the nation’s young and talented workforce.

EFTA’s offer under the TEPA includes tariff concessions covering 92.2% of its tariff lines, which accounts for 99.6% of India’s exports. The agreement provides 100% market access for non-agricultural products and includes tariff relief on processed agricultural products (PAP).

India, in return, is offering 82.7% of its tariff lines, which covers 95.3% of EFTA exports. Additionally, India has secured commitments from EFTA in 114 sub-sectors, with 105 specific sub-sectors targeted for further cooperation.

Looking ahead, TEPA is expected to create numerous direct job opportunities for India’s young workforce over the next 15 years, with a focus on enhancing vocational and technical training facilities. The agreement is seen as a vital step in fostering sustainable economic growth and employment generation for India’s future.

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