On India-EFTA pact: Trade gains

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

Highlights of the trade agreement:

• Aims to increase FDI into India by $50 billion within 10 years, potentially generating one million direct jobs.
• Addressing trade deficit with Switzerland due to gold imports by reduced tariffs under the EFTA agreement.
• Eliminates duties on most industrial goods exported to India, including pharmaceutical products, machinery, watches, fertilizers, and chemical products.
• Most agricultural items are excluded from the agreement, but EFTA’s market access offer covers 100% of non-agricultural products.
• Services sector a vital part of the agreement will facilitate services exports and the movement of skilled personnel.

The way ahead:

• India aims for $2 trillion in exports by 2030, requiring policy action such as:
• Lowering tariffs and signing deeper free trade agreements.
• Emphasis on safeguarding national interests in trade negotiations.
• Measures needed to fully capitalize on benefits from trade agreements.

Source: Indian Express