India-EFTA FTA Boosts Trade, Creates Jobs
India's free trade agreement (FTA) with the European Free Trade Association (EFTA) comes into effect on Wednesday, March 13, 2024. The agreement, signed on March 10, aims to boost two-way commerce and investments between India and the EFTA nations: Iceland, Liechtenstein, Norway, and Switzerland. The FTA provides significant tariff concessions for both parties. India's offer covers 82.7% of EFTA's tariff lines, accounting for 95.3% of EFTA exports, with over 80% of these imports being gold from Switzerland. In return, the EFTA bloc offers tariff concessions on 92.2% of India's tariff lines, covering 99.6% of India's exports, including 100% of non-agricultural products and processed agricultural products. The FTA is expected to benefit Indian exporters in sectors like machinery, organic chemicals, textiles, leather, gems and jewellery, and processed foods. These sectors will enjoy duty concessions, enhancing their competitiveness. However, sensitive sectors such as pharma, medical devices, processed food, dairy, soya, coal, and sensitive agricultural products will remain protected under the pact. The FTA provides a three-year grace period for meeting investment obligations. India stands to gain $50 billion in the first 10 years and another $5 billion in the next five years. The EFTA group has committed to investing $100 billion in India over 15 years, with a target to generate 1 million direct jobs. The FTA, signed on March 10, 2024, comes into effect on Wednesday, March 13, 2024. It promises to strengthen economic ties between India and the EFTA nations. India has secured significant tariff concessions and investment commitments, which are expected to boost exports and create jobs. However, the agreement includes a safeguard mechanism allowing India to temporarily withdraw customs duty concessions if the EFTA bloc fails to fulfil its investment commitments.
Read also:
- Eric Dane Diagnosed with ALS, Advocates for ACT for ALS
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Meta Unveils Ray-Ban AR Display Sunglasses; TikTok Agrees to $200 Million Deal
- Historic downtown temples to receive restoration funds totaling over 25 million pesos
