FX.co ★ India’s Trade Pact with EFTA Bloc Takes Effect Wednesday

India's new trade agreement with four European countries, which includes Switzerland and Norway, is set to commence this Wednesday. This development is expected to enhance the country's exports of textiles, leather, and food products while also inviting increased foreign investment, as noted by a government statement reported by the Economic Times. The Trade and Economic Partnership Agreement, concluded last March after almost 16 years of negotiations, involves the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein. As part of the agreement, EFTA will eliminate tariffs on 92.2% of tariff lines for Indian goods, and in return, India will provide concessions on 82.7% of tariff lines, covering 95.3% of EFTA exports. This move is part of Prime Minister Narendra Modi’s strategy to secure more comprehensive trade agreements with the European Union and the United States. This initiative follows a recent policy shift by President Donald Trump, who announced a tariff increase on Indian imports to 50%, taking effect on August 27, in retaliation for India's continued procurement of Russian oil.