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The Free Trade Agreement (FTA) between India and the European Free Trade
Association (EFTA) countries officially came into effect on 1 October 2025.
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This agreement is expected to give a new dimension to economic
cooperation and trade relations between India and the EFTA nations –
Switzerland, Norway, Iceland, and Liechtenstein.
Key Features of the Agreement
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Reduction in Tariffs: Import and export duties on many goods and
services will be reduced.
¨ Boost to Investments: Increased investment
inflows from EFTA countries into India are expected.
¨ Growth in Exports: Indian sectors such as
pharmaceuticals, textiles, agriculture, and IT will benefit significantly.
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Technology Collaboration: Opportunities for cooperation in research,
innovation, and green technology.
Significance for India
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Easier Access to European Markets – Indian industries will gain a
competitive edge.
¨ Employment Generation – Growth in exports and
investments will create new jobs.
¨ Economic Strengthening – The agreement will
support India’s GDP growth.
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Strategic Partnership – Strengthening ties between India and small yet
prosperous European nations.
Benefits for EFTA Countries
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Access to India’s large consumer market.
¨ Collaboration in IT, pharmaceuticals, and
manufacturing.
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Investment opportunities in startups and green energy sectors in India.
