India-EFTA TEPA: Commerce Minister Visits Liechtenstein

Syllabus: Bilateral Trade Agreements

Ministry of Commerce & Industry

Why in news?

Commerce Minister visited Liechtenstein to accelerate implementation of India-EFTA Trade and Economic Partnership Agreement (TEPA).

⚛️Static Concepts

EFTA vs EURules of OriginInvestment Treaties

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TEPA: India's first FTA with a developed group (EFTA).
EFTA Members: Iceland, Liechtenstein, Norway, Switzerland (NOT part of EU).
Goal: Facilitate USD 100 billion investment into India and create 1 million direct jobs.
Tariffs: EFTA offers 95.3% tariff line coverage; India protects sensitive sectors like dairy, soya, coal, and gold (effective duty unchanged).

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Examiner's Trap: EFTA countries are NOT members of the European Union (EU).

Target: $100 billion investment

Target: 1 million jobs

EFTA: 4 countries

GS-2: IR; GS-3: Economy (Trade).

Investment Anchor: TEPA is unique as it includes binding investment commitments ($100bn) unlike traditional trade deals.
Diversification: Reduces dependence on traditional markets; integrates India with high-tech European economies.
Manufacturing: Complements 'Make in India' by accessing Swiss/Norwegian precision technology.

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