Mumbai: On Saturday, Union Commerce Minister Piyush Goyal announced that the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially take effect on October 1, which is expected to create 1 million direct jobs in India.

EFTA includes Iceland, Liechtenstein, Norway, and Switzerland. This significant agreement, signed on March 10, 2024, is anticipated to attract substantial foreign direct investment (FDI) and enhance trade and economic collaboration across various sectors.

The minister shared on X, “India-EFTA TEPA to come into effect from 1st October.”

The EFTA countries have pledged an investment of $100 billion, which will contribute to the creation of 1 million direct jobs in India.

A dedicated India-EFTA Desk has been established to foster trade, investment, and business collaborations. Goyal mentioned that this desk will serve as a ‘single-window platform’ for both governmental and private sector entities.

The India-EFTA agreement includes $50 billion in FDI within the first decade; an additional $50 billion over the subsequent five years; and aims to generate 1 million direct jobs in India.

TEPA represents one of India’s most extensive trade agreements and is projected to open premium European markets to Indian exporters while facilitating capital influx, innovation, and job creation.

As part of the agreement, EFTA is providing 92.2 percent of its tariff lines, covering 99.6 percent of India’s exports to the region. The EFTA’s market access proposal encompasses 100 percent of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP). In return, India is offering 82.7 percent of its tariff lines, which covers 95.3 percent of EFTA exports, with over 80 percent of imports being gold.

The effective duty on gold remains unchanged. Considerations regarding PLI in sectors such as pharmaceuticals, medical devices, and processed foods have been addressed while extending offers. Sectors like dairy, soya, coal, and sensitive agricultural products are excluded from the agreement.