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New agreement with European trading bloc expected to boost exports and economic ties
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India’s trade agreement with the European Free Trade Association (EFTA) is set to come into force on October 1, Commerce and Industry Minister Piyush Goyal announced today. The deal, finalised earlier this year, is expected to strengthen trade ties and open up new market opportunities for Indian exporters.
EFTA, comprising Switzerland, Norway, Iceland, and Liechtenstein, is known for its advanced economies and high-value sectors. Under the agreement, India will benefit from tariff reductions or eliminations on a wide range of goods, including pharmaceuticals, textiles, and food items. The pact also covers digital trade, government procurement, and technical standards.
“We are taking another step forward in diversifying India’s trade partnerships,” Goyal said. “This pact with EFTA aligns with our vision to enhance market access for Indian businesses and promote jobs and investment.”
Key features of the deal include:
Tariff relief: Immediate duty cuts on select agricultural and industrial products, with further phased reductions.
Export potential: Indian industries—especially pharmaceuticals and garments—are expected to gain significant traction in EFTA markets.
Non-tariff facilitation: Cooperation on technical regulations, simplifying customs procedures, and digital trade protocols.
Representatives from EFTA nations praised the agreement as mutually beneficial. “This pact paves the way for balanced economic growth and deeper collaboration between our regions,” a delegation spokesperson said.
With the implementation date set, preparatory work is already underway. Exporters are being advised to align their production and certification processes, while relevant government departments are coordinating to ensure a smooth transition.
On the domestic front, industry groups have welcomed the development, predicting that increased market access will enhance competitiveness and fuel sectoral expansion.
As India expands its trade horizons, the pact with EFTA marks a strategic move in its broader economic diplomacy — aimed at strengthening global ties and leveraging high-value markets ahead of the festive export season.