PIB Summary- 10th March, 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

India-EFTA Trade and Economic Partnership Agreement

Introduction:

India and the European Free Trade Association (EFTA) have signed a Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

EFTA consists of Switzerland, Iceland, Norway, and Liechtenstein, aimed at promoting free trade and economic integration among its member states.

Key Highlights of TEPA:

Investment and Job Commitments:

• EFTA pledges to increase foreign direct investments in India by $100 billion over the next 15 years, aiming to generate 1 million direct jobs.
• This marks the first time in FTA history that such binding commitments have been made.

Market Access and Tariffs:

• EFTA offers access to 92.2% of its tariff lines, covering 99.6% of India’s exports.
• India reciprocates by offering access to 82.7% of its tariff lines, with exceptions for sensitive sectors like pharmaceuticals and agriculture.

Sector-Specific Commitments:

• India offers 105 sub-sectors to EFTA and secures commitments in various sectors from each member state.
• Sectors like IT services, business services, and education services are highlighted for potential growth.

Services and Intellectual Property Rights (IPR):

• TEPA facilitates better access to services sectors like IT, personal, and education services through digital delivery and commercial presence.
• Commitments related to IPR are at the TRIPS level, addressing concerns such as generic medicines and evergreening of patents.

Sustainable Development and Transparency:

• TEPA emphasizes sustainable development, inclusive growth, and environmental protection.
• It aims to foster transparency, efficiency, and harmonization of trade procedures.

Impact on “Make in India” and Job Creation:

• TEPA is expected to boost domestic manufacturing in sectors like infrastructure, pharmaceuticals, and transport.
• It is projected to create a significant number of direct jobs for India’s youth over the next 15 years, with a focus on vocational and technical training.

Integration into EU Markets and Technology Collaboration:

• TEPA provides an opportunity for Indian companies to access EU markets through EFTA member states.
• It facilitates technology collaboration and access to leading technologies in various sectors, including precision engineering and renewable energy.

Conclusion
TEPA between India and EFTA represents a modern and ambitious trade agreement, aiming to stimulate economic growth, facilitate trade, and create opportunities for both goods and services sectors.