• UGI USER
  • Mar 05, 2024
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INDIA-EFTA TRADE DEAL: PHARMA, FOOD PROCESSING TO BE PART OF INVESTMENTS:

Why in the news?

India-EFTA trade deal: $100 billion investment in India over 15 years, targeting pharmaceuticals, food processing, and chemical sectors for diversification from China dependence.

source:slideserve

About Impact on Trade Dynamics:

  • India’s high average tariffs, exceeding 18%, make duty elimination a significant advantage for EFTA countries.
  • The investment, mainly from provident funds in EFTA nations, seeks market access in India, potentially widening India’s trade deficit with Switzerland.
What is EFTA?

●   Established in 1960, EFTA is an intergovernmental organization.

●   Comprises Iceland, Liechtenstein, Norway, and Switzerland.

●   Offers access to the EU single market through agreements.

●   India’s 9th largest trading partner.

●   Textiles, chemicals, gems, machinery, and pharmaceuticals are main Indian exports.

●   Imports from EFTA include machinery, chemicals, precious metals, and medical instruments.

What is TEPA?

●   TEPA stands for Trade and Economic Partnership Agreement.

●   Aims to boost trade and investment between India and EFTA.

●   Seeks to remove tariffs and non-tariff barriers on various products.

●   Ensures fair market access for service providers and investors.

●   Enhances cooperation on intellectual property rights protection.

●   Facilitates trade procedures and customs cooperation.

●   Provides effective mechanisms for dispute resolution.