On March 10, 2024, India signed a historic deal with the European Free Trade Association (EFTA). It is expected to boost trade and investments between India and the four EFTA nations – Iceland, Liechtenstein, Norway, and Switzerland.
It was good news for Indian consumers that imported goods were about to become cheaper. Due to gradual abolition of taxes on imports, popular goods like Swiss chocolates, watches, wine, soft drinks as well as Norwegian salmon or mackerel are slated to witness price reduction.
The scope of the agreement goes beyond these favorite goodies. Tariffs will be cut steadily on many products shipped from the EFTA countries. These include tropical fruit from Mediterranean area; seafood; coffee; oils; sweets; processed foods and wines from Switzerland.
Consequently this would positively affect Indian consumers in dual ways. Firstly it may result in reduced prices of imports hence making them more available to the common person. Secondly it is anticipated that increased EFTA competition will force local manufacturers to raise their quality levels while also bring down their prices.
By all accounts though, both parties win under the India-EFTA TEPA’s arrangements. As such domestic customers in India shall get access to an expanded variety of quality products at competitive cost whereas EFTA economies shall benefit from wider markets
