India-EFTA trade pact to come into force by September, says Piyush Goyal

Bern [Switzerland], June 9 (ANI): The landmark free trade agreement between India and the European Free Trade Association (EFTA) is set to become operational by September, Commerce and Industry Minister Piyush Goyal announced on Monday during his visit to Switzerland.
EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States - Switzerland, Iceland, Norway and Liechtenstein.
Under the comprehensive pact, EFTA nations have committed to investing $100 billion in India over 15 years.
Through reduced or eliminated tariffs, India is expected to provide preferential access to various European products, including Swiss watches, chocolates, and cut and polished diamonds.
Speaking to reporters in Bern, Goyal said the agreement has secured parliamentary approval from all four EFTA member countries, "By September, TEPA will be operationalised. It will enter into force," the minister stated.
He noted that while Switzerland maintains an objection period open until July 10, the summer holidays of July and August are not expected to delay implementation.
During his Swiss visit, which focused on strengthening bilateral trade and investment ties, Goyal held meetings with over a dozen companies These companies have expressed particular enthusiasm for opportunities in a range of sectors including pharmaceuticals, cybersecurity, and machinery manufacturing sectors.
"There's tremendous excitement here for India," Goyal observed, highlighting Switzerland's growing confidence in India as an investment destination.
Beyond the EFTA agreement, India is actively pursuing trade partnerships with other countries. Goyal revealed negotiations with New Zealand, Chile, Peru, Oman, and the European Union.
He said EU trade pact could be finalised "faster than expected."
The minister also indicated progress on a bilateral investment treaty with the EU.
Goyal emphasised India's manufacturing potential, particularly in machinery production, where the country allows 100% foreign direct investment. This strategy aims to reduce India's dependence on Chinese machinery for imports while positioning the country as a manufacturing hub.
He cited the air conditioning sector as a success story, where government initiatives like the Production Linked Incentive (PLI) scheme have increased local manufacturing content from 20% to 65%, with targets to reach 80% within three years.
Reflecting on India's economic progress under 11 years of NDA governance, Goyal said the country has emerged as a premier global business destination. He highlighted the presence of nearly 2,000 Global Capability Centres in India, underscoring the nation's emergence as a preferred location for both manufacturing and services.
"The world today recognises that the best place to do business is India," Goyal said, attributing this transformation to sustained good governance and strategic policy implementation.
The EFTA agreement represents another step in India's broader strategy to diversify trade partnerships and integrate more deeply into global value chains while attracting significant foreign investment to fuel domestic economic growth. (ANI)