India-EFTA trade pact to enhance stability, predictability in bilateral ties: Piyush Goyal

The trade agreement between India and the four-nation European Free Trade Association (EFTA) will bring greater stability, predictability, and continuity to economic relations between the two regions, Commerce and Industry Minister Piyush Goyal said here on Tuesday.

The European Free Trade Association (EFTA) comprises Iceland, Liechtenstein, Norway, and Switzerland.

Speaking at a business gathering in Bern, Goyal highlighted the complementary strengths of the two partners - India offering a large market and skilled workforce, while the EFTA nations offer capital, advanced manufacturing capabilities and technical knowhow.

The Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, commits EFTA members to invest $100 billion in India over 15 years. In return, India will reduce or eliminate import duties on various products including Swiss watches, chocolates, and cut and polished diamonds.

"The agreement will give stability, predictability and continuity in the partnership," Goyal emphasized.

The pact is expected to be operational by September-October, and India has already completed its ratification process.

Encouraging deeper engagement, the minister urged businesses from both sides to leverage the agreement to boost trade and investment flows. He also proposed a reciprocal mechanism for certification services to support smoother bilateral trade.

— With inputs from PTI