India-EFTA trade deal: Swiss watches to chocolates- 5 things which will become cheaper
India-EFTA trade deal: In a landmark deal with the European Free Trade Association (EFTA), India has signed a trade and economic partnership agreement (TEPA) to boost trade and investments for developed countries- Iceland, Liechtenstein, Norway, and Switzerland. Under the agreement, the four-member EFTA has committed $100 billion in investments in India and the tariffs between both blocs are expected to reduce.
“The culmination of efforts to finalize an innovative, well-balanced trade deal that reflects our respective developmental aspirations is commendable. One of the most pioneering free trade agreements ever concluded between our countries, TEPA emphasizes our steadfast commitment to shared prosperity and our drive to cultivate a stronger, more inclusive partnership between India and EFTA, furthering the aspirations of our people," Prime Minister Narendra Modi said after the signing of India-EFTA Trade and Economic Participation Agreement (TEPA).
India has a huge trade deficit with the countries in EFTA and is working to reduce the tariffs to provide better prices for Indian consumers. In 2022-23, the two-way trade between India and EFTA was $18.65 billion and the trade deficit for India was $14.8 billion.
Moreover, the total trade between the two blocs in the last fiscal declined considerably from $27.23 billion in FY21-22. After the conclusion of India-EFTA TEPA, the elimination of duties is expected on most of industrial goods like Swiss watches, pharmaceutical products, fertilizers, chocolates, minerals, textiles, smartphones, iron and steel products, etc.
As per reports, Switzerland accounts for 91% of trade between India and EFTA and the goods arriving for the nation face high tariffs. For context, India levies
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