India-EFTA trade pact: Swiss wines, chocolates and apparel to get cheaper; Indian exports to get wider market access
The India-European Free Trade Association (EFTA) free trade agreement, coming into effect from Wednesday, will make several Swiss products, including wines, chocolates, apparel, and watches , cheaper in the Indian market.
The agreement, signed in March 2024 under the Trade and Economic Partnership Agreement (TEPA), also opens greater market access for India’s labour-intensive exports such as tea, coffee, fruits, processed foods, textiles, marine products, leather, sports goods, toys, and gems and jewellery in the four EFTA countries – Iceland, Liechtenstein, Norway, and Switzerland.
Engineering goods, electronics, chemicals, and plastic products are among other Indian sectors set to benefit from the lowering of duties under the pact. According to the commerce ministry, India’s offer to EFTA covers 82.7 per cent of tariff lines accounting for 95.3 per cent of EFTA exports, while the bloc has offered 92.2 per cent of tariff lines representing 99.6 per cent of India’s exports.
Sensitive sectors including pharmaceuticals, medical devices, processed food, dairy, soya, coal, and certain agricultural products remain protected. Gold imports, forming over 80 per cent of EFTA exports to India, will see no change in effective duty.
An analysis by the Global Trade Research Initiative (GTRI) noted that duties on several items from the bloc, including coal (except steam and coking), most medicines, dyes, textiles, apparel, and iron and steel products, will be reduced to zero immediately. Duties on products such as cod liver oil, fish body oil, smartphones will fall to zero within five years, while goods including tuna, salmon, olive oil, chocolate, and watches will see phased elimination over seven to ten years.
The ministry highlighted that Norway and Switzerland together account for over 99 per cent of India’s agri-exports to EFTA, which are dominated by guar gum, processed vegetables, basmati rice, pulses, fresh fruits, cereal preparations, and grapes. The pact is expected to enhance India’s share in these commodities and reduce tariff barriers significantly.
TEPA is also seen as a strategic springboard for India’s electronics sector, offering $100 billion in investment commitments and preferential access to high-income European markets. Sectors such as medical electronics, smart sensors, secure communication modules, EV components, marine electronics, and battery management systems are likely to gain from the expanded access.
The agreement, signed in March 2024 under the Trade and Economic Partnership Agreement (TEPA), also opens greater market access for India’s labour-intensive exports such as tea, coffee, fruits, processed foods, textiles, marine products, leather, sports goods, toys, and gems and jewellery in the four EFTA countries – Iceland, Liechtenstein, Norway, and Switzerland.
Engineering goods, electronics, chemicals, and plastic products are among other Indian sectors set to benefit from the lowering of duties under the pact. According to the commerce ministry, India’s offer to EFTA covers 82.7 per cent of tariff lines accounting for 95.3 per cent of EFTA exports, while the bloc has offered 92.2 per cent of tariff lines representing 99.6 per cent of India’s exports.
Sensitive sectors including pharmaceuticals, medical devices, processed food, dairy, soya, coal, and certain agricultural products remain protected. Gold imports, forming over 80 per cent of EFTA exports to India, will see no change in effective duty.
An analysis by the Global Trade Research Initiative (GTRI) noted that duties on several items from the bloc, including coal (except steam and coking), most medicines, dyes, textiles, apparel, and iron and steel products, will be reduced to zero immediately. Duties on products such as cod liver oil, fish body oil, smartphones will fall to zero within five years, while goods including tuna, salmon, olive oil, chocolate, and watches will see phased elimination over seven to ten years.
The ministry highlighted that Norway and Switzerland together account for over 99 per cent of India’s agri-exports to EFTA, which are dominated by guar gum, processed vegetables, basmati rice, pulses, fresh fruits, cereal preparations, and grapes. The pact is expected to enhance India’s share in these commodities and reduce tariff barriers significantly.
TEPA is also seen as a strategic springboard for India’s electronics sector, offering $100 billion in investment commitments and preferential access to high-income European markets. Sectors such as medical electronics, smart sensors, secure communication modules, EV components, marine electronics, and battery management systems are likely to gain from the expanded access.
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