India-EFTA trade deal to take effect from October 1, confirms Piyush Goyal

Mumbai: The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will become operational from October 1, Union Commerce and Industry Minister Piyush Goyal announced on Saturday.

"All countries have now ratified. Lodged their document with the repository, which was Norway, and from first October, EFTA will come into effect," Goyal said while speaking at the 'Creating Global Impact Towards Viksit Bharat' session hosted by ASSOCHAM in Mumbai.
 

The agreement, signed on March 10, 2024, by India and EFTA member states — Iceland, Liechtenstein, Norway and Switzerland — marks a huge step forward in strengthening bilateral trade and investment cooperation.

The TEPA outlines the foundational principles for trade ties between India and the EFTA nations, with shared commitments to sustainable development, sound corporate governance and corporate social responsibility.

Established in 1960, EFTA is an intergovernmental organisation aimed at promoting free trade and economic integration among its four member states.

As part of the pact, EFTA has pledged to boost foreign direct investment (FDI) in India by USD 100 billion over the next 15 years. This initiative is expected to generate one million direct jobs in India. The proposed investment commitment excludes foreign portfolio investments.

The agreement also incorporates elements from the World Trade Organization’s Trade Facilitation Agreement and aligns with various international standards and accords.

Among EFTA nations, Switzerland leads as India’s top trading partner, followed by Norway.

At the event, Goyal reinforced the government’s cautious and strategic approach to trade agreements, stating that India will engage in such partnerships only when they align with national interests.