Lok Sabha Question No. 135 (STARRED), answered on 2025-07-29
Subject: Investment Commitments under India–EFTA Trade Agreement
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Godam Nagesh, Shri Balabhadra Majhi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA STARRED QUESTION NO. 135

ANSWERED ON 29.07.2025

## INVESTMENT COMMITMENTS UNDER INDIA-EFTA TRADE AGREEMENT

- *135. SHRI BALABHADRA MAJHI: SHRI GODAM NAGESH:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य और उद्योग मंत्री )  be pleased to state :-

- (a) the details of the amount of investment committed by the European Free Trade Association (EFTA) for technology transfer and manufacturing in India;
- (b) the estimated volume of investments proposed under the agreement, particularly in sectors aligned with Make in India and advanced manufacturing objectives;
- (c) whether the Government has initiated any facilitation mechanism to streamline the inflow of EFTA-linked investments, if so, the details thereof;
- (d) the details of the impact of the India-EFTA on agricultural sector;
- (e) whether the agreement would benefit agriculture linked industries to promote exports to Europe, if so, the details thereof; and
- (f) whether the agreement benefits horticulture sector especially for Chikkaballapur blue grapes, mangoes from Karnataka and others, if so, the details thereof?

## ANSWER

वाणिज्य और उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE AND INDUSTRY (SHRI PIYUSH GOYAL)

(a) to (f): A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF LOK SABHA STARRED  QUESTION  NO.  135  FOR  ANSWER  ON  29.07.2025  REGARDING 'INVESTMENT COMMITMENTS UNDER INDIA-EFTA TRADE AGREEMENT'

(a) & (b) The India-European Free Trade Association (EFTA) Trade and Economic Partnership  Agreement  (TEPA),  signed  on  10th  March,  2024,  is  a  modern  and forward-looking agreement. For the first time in history of Free Trade Agreements, binding commitment of $100 billion investment  or ₹ Eight Lakh Sixty Five Thousand crores at current exchange rate and 1 million direct jobs over the next 15 years has been secured from Switzerland, Norway, Liechtenstein and Iceland.

Under Chapter 7 of the TEPA on Investment Promotion and Cooperation, the EFTA States shall aim to increase foreign direct investment (FDI) from their investors into India by USD 50 billion within 10 years from the entry into force of the Agreement, and an additional USD 50 billion in the succeeding 5 years, amounting to a total of USD 100 billion over 15 years. Concurrently, the EFTA States shall aim to facilitate the generation of 1 million direct jobs in India resulting from these investment inflows. This investment commitment explicitly excludes foreign portfolio investment (FPI), focusing on long-term capital for productive capacity building and for job creation.

The  TEPA  is  expected  to  give  a  significant  impetus  to  the  'Make  in  India'  and 'Atmanirbhar  Bharat'  initiatives.  The  investments  are  anticipated  to  flow  into  key sectors such as infrastructure and connectivity, manufacturing, machinery, pharmaceuticals,  chemicals,  food  processing,  transport  and  logistics,  banking  and financial services, insurance, and renewable energy, thereby promoting technology collaboration, innovation, Research & Development and access to leading technologies. These will help improve skills of our aspirational youth and raise the quality of life for millions of people.

(c) The Government has established a robust facilitation mechanisms to streamline the inflow of EFTA-linked investments.

A dedicated India-EFTA Desk has been launched in February, 2025 to function as a single-window platform for EFTA businesses looking to invest, expand, or establish operations in India. This Desk provides support, including market insights, regulatory guidance, business  matchmaking,  and  assistance  in  navigating India's policy landscape, thereby ensuring transparency and ease of doing business.

Furthermore, the TEPA itself establishes a Sub-Committee on Investment Promotion and  Cooperation  under  Chapter  7.  This  institutional  body,  comprising  government representatives  of  the  Parties,  is  mandated  to  oversee,  review,  and  monitor  the implementation of the investment promotion chapter, including the progress towards achieving the shared objectives on investment and job creation.

(d) & (e) The Government negotiated the TEPA with utmost regard for the sensitivities of the Indian agricultural sector. A key outcome of the negotiations is that sensitive agricultural products have been kept in India's exclusion list. Sectors such as dairy, soya, and other sensitive agricultural items are not part of the tariff concession offers made by India. This approach ensures that the livelihoods of our farmers are protected from  import  competition  in  these  areas.   The  agreement  is  expected  to  benefit agriculture-linked industries and promote their exports. Specifically, the EFTA market access offer includes tariff concessions on various Processed Agricultural Products (PAP). This creates new export opportunities for India's food processing sector.

(f) Government has secured duty free access for Indian horticultural products in the EFTA markets. For instance, under the agreement, Switzerland will eliminate customs duties on various basic agricultural products including mangoes, guavas and citrus fruits. The detailed Schedules of Concessions, which are part of the TEPA text, outline the  specific  tariff  lines  for  which  benefits  are  available  publicly,  thereby  creating  a positive framework for the export of a wide variety of Indian horticultural products. Further, the TEPA establishes a robust institutional mechanism to facilitate market access  by  addressing  non-tariff barriers  through  Chapter  4  on  Sanitary  and Phytosanitary (SPS) Measures, which aims to facilitate trade while protecting human, animal, and plant life and health. Both sides have reaffirmed the rights and obligations under the WTO SPS Agreement, preserving necessary policy space. There are no technical restrictions preventing the export of Chikkaballapur blue grapes, mangoes from Karnataka and other states to the EFTA countries.

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