Here's how India's $100 billion trade pact with EFTA will benefit Indians; Swiss watches, chocolates to get cheaper
European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, aiming to boost trade and investments between the two regions. This agreement is expected to bring several benefits to Indian consumers and the economy.
Key Benefits for Indian Consumers
One of the major benefits of this trade pact is the phased-out custom duties on imported goods, which will enable domestic consumers to access high-quality Swiss products such as watches, chocolates, biscuits, and clocks at lower prices. The agreement includes tariff concessions on a range of products imported from Switzerland, including seafood, mediterranean fruits, coffee, oils, sweets, processed foods, and wine, among others. This will lead to a drop in prices of these products in Indian markets, making them more affordable and accessible to Indian consumers.
Impact on Pricing and Market Access
The agreement specifies tariff reductions on various products over time. For example, wines priced between $5 and less than $15 will see a duty reduction from 150 per cent to 100 per cent in the first year, gradually decreasing to 50 per cent over 10 years. Tariffs on cut and polished diamonds will be reduced from 5 per cent to 2.5 per cent in five years. However, there is no effective tariff concession on gold, as the effective duty remains at 15 per cent.
Benefits for Indians
The agreement is expected to benefit Indian consumers, as the government will phase out custom duties on imported goods over time. This move will enable domestic
