India's trade pact with EFTA, including Iceland, Liechtenstein, Norway & Switzerland, is under ratification. The agreement aims to boost trade & investment.
New Delhi, Aug 2 (PTI) The government on Friday said the free trade agreement signed between India and the four European nation bloc EFTA in March is under the ratification process in those countries.
In a written reply to the Rajya Sabha, Minister of State for Commerce and Industry Jitin Prasada said that there is no fixed time frame for the ratification, as the process is different in each of the EFTA (European Free Trade Association) countries.
In March, India and EFTA signed a Trade and Economic Partnership Agreement (TEPA).
Under the pact, India will receive the investment in 15 years from the grouping while allowing several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.
The EFTA members are Iceland, Liechtenstein, Norway and Switzerland.
"The TEPA agreement is under the ratification process in the national parliament or legislature of each EFTA country," Prasada said.
In India, such trade pacts are approved by the Union Cabinet.
According to the data provided by the minister in his reply, the two-way trade rose to USD 24 billion in 2023-24 from USD 18.66 billion in 2022-23.
It was USD 27.23 billion in 2021-22 and USD 20.5 billion in 2019-20.
EFTA countries are not part of the European Union (EU). It is an inter-governmental organisation for the promotion and intensification of free trade. It was founded as an alternative for states that did not wish to join the European community.
India's exports to EFTA countries during 2023-24 were only USD 1.94 billion as against USD 1.92 billion in 2022-23 and USD 1.74 billion in 2021-22. Imports aggregated at USD 22 billion in 2030-24, USD 16.74 billion in 2022-23 and USD 25.5 billion in 2021-22.
The trade gap is in favour of EFTA.
Replying to a separate question, Prasada said that India's imports from China have shown a mixed trend in the last 5 years (2019-20 to 2023-24).
"While imports decreased during the first two years (2019-20 and 2020-21), these increased during the next three years," he said.
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