Swiss Products To Become More Accessible In Indian Markets After Tariff Reduction

New Delhi, Mar 11 (KNN) India has embarked on a significant economic journey with the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, as both regions inked a transformative trade and economic partnership agreement on Sunday.

The pact, aiming to invigorate trade and investments, entails a staggering commitment of USD 100 billion from EFTA into India over the next 15 years.

The long-awaited accord comes after a hiatus of nearly 16 years, reflecting the culmination of dedicated negotiations spanning over a decade.

Commencing in 2008, talks were temporarily suspended in November 2013, only to resume with vigour in October 2016.

Through 21 rounds of intense negotiations, both sides have forged a path toward mutual prosperity, marking a historic milestone in free trade agreement (FTA) history.

Notably, the agreement encompasses a dedicated legal commitment to stimulating targeted investment and fostering job creation.

Prime Minister Narendra Modi hailed the signing as a watershed moment, emphasising the shared commitment to nurturing open, equitable trade.

He lauded the global leadership of EFTA nations across diverse sectors, foreseeing boundless opportunities for collaboration in innovation, digital trade, finance, logistics, biotechnology, and clean energy.

Expressing felicitations to the negotiators and signatories, PM Modi hailed the India-EFTA Trade and Economic Participation Agreement (TEPA) as a gateway to enhanced bilateral ties.

With the agreement in place, India is poised to gradually phase out customs duties on imported goods, facilitating access for domestic consumers to premium Swiss products at competitive prices.

An analysis by the Global Trade Research Initiative (GTRI) reveals that India has extended tariff concessions to various Swiss imports under TEPA.

Seafood, Mediterranean fruits, coffee, oils, confectionery, wine, and a myriad of other goods are set to witness price reductions in Indian markets.

Notably, watches, smartphones, medical equipment, textiles, and machinery equipment are among the array of products encompassed by the agreement.

In particular, the accord brings cheers to consumers as tariffs on Swiss wines and diamonds undergo gradual reductions over the coming years.

With duties on wines decreasing from 150 per cent to 50 per cent over a decade and diamond tariffs slashed by half in five years, Indian consumers can anticipate a more diverse and affordable market.

However, amidst the concessions, India has maintained its stance on gold tariffs, offering minimal benefits to importers.

While a nominal concession on the bound rate has been agreed upon, the effective duty remains unchanged at 15 per cent, leaving the gold trade scenario unaffected.

India's trade ties with Switzerland span a diverse spectrum, including substantial imports of gold, machinery, pharmaceuticals, coal, optical instruments, watches, and chocolates.

The TEPA is poised to deepen these relations, unlocking new avenues for trade expansion and economic collaboration between the two regions.

(KNN Bureau)