Shri Sunil Barthwal, Secretary, Department of Commerce, Ministry of Commerce and Industry, visited Norway along with senior officials. The main objective of the visit was to strengthen the Trade and Economic Partnership Agreement (TEPA) between India and Norway, open up the large market of EFTA countries for Indian exports of goods and services and to advance efforts for early realisation of $100 billion investment.
Trade and Economic Partnership Agreements
- Signature: TEPA is signed between India and four EFTA countries – Iceland, Liechtenstein, Norway and Switzerland in March 2024.
EFTA offers
- Provides duty exemptions on 92.2% of tariff lines.
- Covers 99.6% of India’s exports.
- Includes market access for 100% of non-agricultural products and tariff concessions on processed agricultural products (PAP).
India’s offer
- Provides duty exemptions on 82.7% of tariff lines.
- Covers 95.3% of EFTA’s exports.
Agreements in Services
- India has offered 105 sub-sectors to EFTA and received commitments in 114 sub-sectors from Norway.
- TEPA will boost India’s services exports, especially in sectors such as IT services, business services, personal, cultural, sports and recreation services, other educational services, and audio-visual services.
Services by EFTA
- Improved access to services through digital means (Mode 1).
- Improved commercial presence (Mode 3).
- Increased commitments and certainty for entry and temporary stay of key personnel (Mode 4).
Key areas of TEPA
Service Sectors
- TEPA will boost India’s service exports, especially in IT, business services, education, cultural exchange and audio-visual services.
EFTA provides better facilities for
- Delivery of digital services (Mode 1).
- Establishing a commercial presence (Mode 3).
- Movement of key personnel and temporary stay (Mode 4).
Impact on Manufacturing:
TEPA will support India’s domestic manufacturing, especially in the following sectors:
- Infrastructure, pharmaceuticals, chemicals, food processing, logistics, and banking.
- Technology and R&D Collaboration: Promotion of advanced technologies and collaboration in areas such as renewable energy, health sciences, precision engineering and innovation.
Potential benefits for India
- Job creation: Will create direct employment opportunities for India’s young workforce. • Skill development: Expanding vocational and technical training opportunities.
- Technical cooperation: Advances in precision engineering, renewable energy, health sciences and research and development (R&D).
- Increase in exports: 99.6% of India’s exports will get market access in EFTA countries. Will encourage $100 billion investment.