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As India-EFTA & TEPA commences access covers concession on processed products
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Tuesday, 07 October, 2025, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The India-European Free Trade Association (EFTA) & Trade and Economic Partnership Agreement (TEPA) commenced on October 1, 2025, wherein the EFTA’s market access offer under TEPA covers tariff concession on Processed Agricultural Products (PAP).
According to the Government of India, the agreement goes beyond goods and services and is committed to promote investments with the aim to increase the stock of foreign direct investments by US$ 100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments.
The agreement focused on market access related to goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access on services, intellectual property rights, trade and sustainable development and other legal and horizontal provisions, wherein EFTA is one important economic block out of the three (other two - EU & UK) in Europe. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.
Under the agreement, India has offered commitments in 105 sub-sectors and EFTA commitments include 128 (Switzerland), 114 (Norway), 107 (Liechtenstein), 110 (Iceland).
Further, as per government briefing, India’s exports to EFTA are concentrated, with Guar Gum accounting for over 70% of the export basket in 2024-25. Other exports include processed vegetables, basmati rice, pulses, fresh fruits, cereal preparations, and grapes, wherein Norway and Switzerland together account for over 99% of India’s agri-exports to EFTA.
India’s exports to EFTA stood at US$72.37 million in 2024, contributing 0.41% of EFTA’s total imports. This agreement is expected to reduce tariff barriers and expand India’s share in key commodities.
The Government expected gains based on trade patterns and FTA tariff concessions in processed food products like biscuits, confectionery, chocolate, malt extracts, sauces, and miscellaneous food preparations, rice (Basmati & Non-Basmati) wherein tariff elimination enhances competitiveness against Italy, Thailand, and Pakistan, Guar Gum & Pulses where India already has strong presence.
A statement by the Government of India stated that FTA will secure larger market share, fresh grapes, mangoes, vegetables, and millets for which tariff concessions improve market entry and positioning and cashew kernels and other nuts demand in EFTA is large, and India can scale exports.
Besides, India gains opportunities for coffee and tea along with marine products. As per government assessment in Norway, exemption of duty of upto 13.16% from fish/shrimp feed will make Indian products competitive and enhance the export of fish feed and raw materials for fish/shrimp feed from India to Norway, in Iceland, tariff elimination of upto 10% on frozen, prepared and preserved shrimps and prawns, squid cuttlefish and upto 55% on fish feed will help Indian export, for Switzerland there will be zero duty on fats and oils of fish (other than liver oil).
The agreement is expected to increase exports of marine products to US$3.50 million in coming years.
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