The recently implemented Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA) is set to provide a significant boost to Indian exporters. Effective since October 1st, the agreement has sparked considerable interest, particularly from Norwegian companies, opening up opportunities in sectors like textiles and fostering cooperation in maritime and green energy.

Norway's Ambassador to India, May-Elin Stener, has welcomed the operationalization of the India-EFTA FTA, highlighting it as a significant milestone for India-Norway relations. The agreement aims to boost trade, attract $100 billion in investment, and create one million jobs over the next 15 years. The EFTA bloc comprises Switzerland, Norway, Iceland, and Liechtenstein.

The FTA is expected to provide Indian exporters with access to large European and global markets, while also boosting the "Make in India" initiative and providing opportunities for India's young workforce.

The agreement, officially termed the Trade and Economic Partnership Agreement (TEPA), was signed on March 10, 2024, after 16 years and 21 rounds of negotiations. Commerce Minister Piyush Goyal has described the agreement as a model partnership that integrates innovation, sustainability, and technology.

Under the agreement, EFTA is offering 92.2% of its tariff lines, covering 99.6% of India's exports. This includes 100% market access for non-agricultural products and tariff concessions on processed agricultural products. India, in turn, is offering 82.7% of its tariff lines, covering 95.3% of EFTA exports.

During the India-Norway Business Forum in Mumbai, Norway reaffirmed its commitment to the TEPA, emphasizing its potential to elevate bilateral trade and investment, particularly in renewable energy, maritime industries, and sustainability. Ambassador Stener confirmed Norway's intention to ratify the TEPA by 2025 and announced plans to host the Indo-Nordic Summit that year.

The agreement also includes a sustainability clause, binding both sides to uphold labor rights and environmental standards. Bilateral trade is projected to rise to $55-60 billion annually under the new tariff schedules. Ports and airports are expediting consignments to give exporters an early advantage.

While the FTA presents significant opportunities, there are also challenges to address. During the India-Norway Business Forum, Norwegian firms raised concerns regarding regulatory hurdles, public procurement policies, and compliance with quality standards in sectors like logistics, energy, food processing, and the circular economy. Minister Goyal assured that these issues would be addressed with the relevant ministries.

To further enhance collaboration, Goyal proposed a "startup bridge" initiative to foster collaboration, potentially launching it during the Indo-Nordic Summit in 2025. Norwegian companies have expressed their commitment to expanding operations in India, and Goyal has encouraged them to utilize local talent for both domestic and international opportunities.

The India-EFTA FTA represents a significant step in India's strategy to deepen global trade ties and integrate into global value chains. With its focus on investment, job creation, and sustainable development, the agreement has the potential to transform the economic relationship between India and the EFTA countries.