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Source-This post on India-EFTA trade deal has been created based on the article “India signs trade agreement with EFTA: Why it marks a shift, could be a template for bigger deals” published in “The Indian Express” on 11 March 2024.
Why in the news?
India has recently signed a free trade agreement (FTA) with four European countries-Iceland, Liechtenstein, Norway, and Switzerland.
India-EFTA trade deal
Signed between-India & four European countries-Iceland, Liechtenstein, Norway, and Switzerland.
Objective-The FTA envisions a goal of reaching $100 billion in investments in India and creation of 1 million jobs within 15 years.
What is the significance of India-EFTA trade deal?
1)It will ensure tariff reduction, increase in market access, and simplification of customs procedures.
2) For the first time, the FTA also included a chapter on commitments to human rights and sustainable development.
3) The pact could serve as a template when dealing with developed nations, who will have greater market access in a high tariff country like India and have investments to offer.
NOTE-The Trade and Economic Partnership Agreement (TEPA) marks the second such full-fledged FTA signed after India’s agreement with the United Arab Emirates.
About European Free Trade Association (EFTA)
Description-The European Free Trade Association (EFTA) is an intergovernmental organization set up for the promotion of free trade and economic integration to the benefit of its four Member States – Iceland, Liechtenstein, Norway, and Switzerland – and the benefit of their trading partners around the globe.
Founded by-It was founded by the Stockholm Convention in 1960.
Trade robustness-In 2021, it was the tenth-largest trader in the world in merchandise trade and the eighth-largest in trade in services. It is also among the most important trading partners in goods and services for the EU.
India-EFTA trade– In 2022, the combined EFTA-India merchandise trade surpassed USD 6.1 billion. The primary imports to the EFTA States consisted of organic chemicals (27.5%). The machinery (17.5%) and pharmaceutical products (11.4%), constituted the main exports to India.
Read more-India-EU free trade agreement
UPSC Syllabus-Indian economy & International relations.
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