India and EFTA Strengthen Trade Ties at New Delhi Event
In a significant step towards enhancing trade relations, Commerce Secretary Shri Rajesh Agrawal addressed key stakeholders at the Outreach Event for Major Exporters in New Delhi. The event, part of the 2nd India-EFTA Prosperity Summit 2026, gathered representatives from Export Promotion Councils, industry associations, exporters, and business leaders from the EFTA States—comprising Iceland, Liechtenstein, Norway, and Switzerland—to promote opportunities arising from the recently enforced India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA).
TEPA became effective on October 1, 2025. In his speech, Shri Agrawal noted the presence of leaders from all four EFTA nations in New Delhi to commemorate the first anniversary of the Agreement and discuss its future direction.
He emphasized the reciprocal market access established by the Agreement, highlighting that EFTA’s commitments encompass 92.2% of its tariff lines, which accounts for 99.6% of India’s exports. Conversely, India’s commitments cover 82.7% of tariff lines, facilitating 95.3% of EFTA’s exports.
Shri Agrawal pointed out that the Agreement transcends mere tariff reductions, stating that its most crucial aspect for businesses is predictability. Businesses can expect stable tariffs, enabling them to invest, build supply chains, and plan confidently for the future. He urged Indian enterprises to collaborate with EFTA businesses to create robust value chains, from sourcing inputs to final production, boosting reliability for both regions.
The Commerce Secretary further noted the high-income nature of the EFTA markets, which value quality products. He stated, “If you are able to create quality products in this market, then you are ready for any other market.” This presents an opportunity for Indian exporters, especially in agriculture, where reduced duties on various products can lead to significant export potential.
Shri Agrawal pointed out that the combined EFTA markets import goods and services worth over $500 billion annually, representing a crucial opportunity for Indian exports.
During the event, he urged Export Promotion Councils, industry groups, and state governments to share insights about the Agreement with businesses nationwide. He advocated for action plans that detail growth strategies in EFTA markets over the next five years, including addressing non-tariff issues.
He remarked, “The idea is not that businesses in EFTA countries only see India as an extension of their market. The idea is also that businesses in India should see the market of EFTA countries as an extension of their market.”
A unique aspect of TEPA is its focus on foreign direct investment (FDI). Under Article 7.1, EFTA nations are committed to boosting FDI into India by $50 billion within a decade of the Agreement’s activation, with an additional $50 billion over the subsequent five years, creating an anticipated one million jobs in India within the next 15 years.
Shri Agrawal concluded by highlighting India as a growing market with diverse investment opportunities, asserting that stronger business partnerships can take investments to unprecedented heights.
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