India expects boost to agri-exports, access for skilled professionals with EFTA trade deal

India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) is slated to come into force from 1st October. The EFTA bloc comprises Switzerland, Iceland, Norway, and Liechtenstein. Under the TEPA, EFTA has offered 92.2% of its tariff lines, which cover 99.6% of India’s exports, while India has offered 82.7% of its tariff lines, which cover 95.3% of EFTA exports.

Over 80% of these imports are gold, with no change in effective duty on gold. Sectors which have been protected include pharma, medical devices, processed food, dairy, soya, coal, and sensitive agricultural products.

TEPA aims to stimulate services trade in sectors like IT services, business services, other education services, audio-visual services, etc. As per India’s Commerce Ministry, services offers from EFTA include better access through digital delivery of services, commercial presence, and improved commitments and certainty for entry and temporary stay of key personnel.

TEPA has provisions for Mutual Recognition Agreements (MRAs) in professional services like nursing, chartered accountancy, and architecture, while the agreement comprises 14 chapters with main focus on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development, and other legal and horizontal provisions.

The EFTA’s market access offer under TEPA covers 100% of non-agri products and tariff concessions on Processed Agricultural Products (PAP), while factoring in sensitivity related to PLI in sectors like pharma, medical devices, and processed foods.

India has offered commitments in 105 sub-sectors, while the respective commitments by EFTA’s constituents are: 128 (Switzerland), 114 (Norway), 107 (Liechtenstein), and 110 (Iceland).

The Commerce Ministry has said that the TEPA ensures IPR commitments at TRIPS level, with the IPR chapter with Switzerland having a high standard for IPR, adding that India’s interests in generic medicines and concerns related to evergreening of patents have been fully addressed. It aims to facilitate technology collaboration and access to leading global technologies in precision engineering, health sciences, renewable energy, innovation, and Research & Development.

With EFTA’s offer covering 92% of tariff lines, Indian exporters in sectors like machinery, organic chemicals, textiles, and processed foods will enjoy significantly improved access to EFTA markets, which is expected to enhance competitiveness, reduce compliance costs, and accelerate access to EFTA markets.

India’s current exports to EFTA are concentrated, with guar gum accounting for over 70% of the export basket in 2024-25. Other exports include processed vegetables, basmati rice, pulses, fresh fruits, cereal preparations, and grapes. Norway and Switzerland together account for over 99% of India’s agri-exports to EFTA. India’s exports to EFTA stood at $72.37 million in 2024, contributing 0.41% of EFTA’s total imports. The agreement is expected to reduce tariff barriers and expand India’s share in key commodities.

Based on trade patterns and FTA tariff concessions, the Commerce Ministry has termed the following categories are high-opportunity sectors for India:

•  Processed Food Products: biscuits, confectionery, chocolate, malt extracts, sauces, and miscellaneous food preparations
• Rice (Basmati & Non-Basmati), with tariff elimination enhancing competitiveness against Italy, Thailand, and Pakistan
• Guar Gum & Pulses: where India already has a strong presence, FTA will secure larger market share
• Fresh Grapes, Mangoes, Vegetables, and Millets: tariff concessions can improve market entry and positioning
• Cashew Kernels and Other Nuts: India can scale exports in view of large demand in the EFTA bloc