Finance Minister Nirmala Sitharaman on Monday held separate discussions with Helene Budliger Artieda, Swiss State Secretary for Economic Affairs and Dominique Hasler, Minister of Foreign Affairs of The Principality of Liechtenstein to strengthen bilateral economic relations with the two members of the European Free Trade Association (EFTA).

“Finance Minister Nirmala Sitharaman had a productive discussion with Ms. Helene Budliger Artieda, Swiss State Secretary for Economic Affairs in New Delhi, today. They explored opportunities for deeper collaboration in investment innovation and economic growth,” the Finance Ministry posted on X.

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In another post on X, the Finance Ministry stated that Sitharaman “met with Dominique Hasler, Minister of Foreign Affairs, of The Principality of Liechtenstein, New Delhi, today. They discussed avenues for economic cooperation, investment and deriving shared benefits for both nations”.

Meanwhile, in a significant step towards deepening economic ties with the European Free Trade Association (EFTA), Minister for Commerce and Industry Piyush Goyal along with his counterparts from EFTA bloc inaugurated the EFTA Desk at Bharat Mandapam in the national capital on Monday.

The Desk aims to promote trade, investment, and business facilitation between India and EFTA as part of the commitment in the trade deal to push private companies to invest $100 billion in India over the next 15 years.

The Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland, is likely to be operationalised in the later part of the year, Goyal said at the launch.

“We hope to operationalise the TEPA in the later part of the year. All the four nations are going through their internal ratification processes, while India has already approved the TEPA, so we are sorted, We have to wait for their parliamentary processes, which may take anywhere between four to six months to conclude, so by fall of 2025 is somewhat possibly feasible, I would think,” Goyal told journalists.

While, the trade and investment deal between India and EFTA nations was inked on March 10, 2024, it is yet to be implemented given lengthy ratification processes.

Helene Budliger Artieda, Swiss State Secretary explained that Switzerland has a two-chamber system: “TEPA has passed through the first chamber, with no votes against it, it is now heading towards the second chamber…after which it has to go through a referendum.”

Liechtenstein and Norway’s Parliaments, too, have to ratify the trade deal before it can be operationalised, a process which is currently underway.

Total trade between India and EFTA nations stood at around $18.66 billion in 2022-23, with the largest share belonging to Switzerland, followed by Norway.

The India-EFTA Dedicated Desk will act as a centralised support mechanism for EFTA companies looking to expand in India. It will provide market insights and regulatory guidance, business matchmaking, and assistance in navigating India’s policy and investment landscape.

EFTA has committed to promote investments with the aim to increase the stock of foreign direct investments by $100 billion in India in the next 15 years, and to facilitate the generation of 1 million direct employment in India, through such investments. The investments do not cover foreign portfolio investment.

EFTA is offering 92.2 per cent of its tariff lines which covers 99.6 per cent of India’s exports to the region.

The EFTA’s market access offer covers 100 per cent of non-agri products and tariff concession on Processed Agricultural Products (PAP).

Under the agreement, India is offering 82.7 per cent of its tariff lines which covers 95.3 per cent of EFTA exports of which more than 80 per cent import is gold.

The effective duty on gold remains untouched.

Sensitivity related to PLI in sectors such as pharma, medical devices and processed food etc. have been taken while extending offers.

Sectors such as dairy, soya, coal and sensitive agricultural products are kept in the exclusion list.