India-EFTA Trade Pact: 8,000 Certificates Issued in First Year
India's trade with EFTA markets grows as 8,000 Rules of Origin certificates are issued and new products enter the export basket in the first year.
The India-European Free Trade Association (EFTA) trade agreement has demonstrated significant early momentum, with approximately 8,000 Rules of Origin certificates issued during its inaugural year. This surge indicates that Indian businesses are actively leveraging the Trade and Economic Partnership Agreement (TEPA) to access preferential tariff treatments.
Commerce Secretary Rajesh Agrawal confirmed the progress on Wednesday, noting that the agreement is already facilitating the movement of goods that were previously not part of India's export basket to EFTA markets. While the establishment of complex new supply chains is expected to take more time, the initial uptake is being viewed as a strong indicator of the pact's efficacy.
Expanding the Export Basket
One of the most notable developments in this first year has been the diversification of Indian exports. According to Agrawal, exporters have begun shipping a variety of products to EFTA nations that had never been sent to these markets before.
“It is the first year, so it will take time for new products and new supply chains to be created. We have seen the export of many such new products start that were not exported before. So this is also a good sign that the agreement is working,” said Rajesh Agrawal.
Rules of Origin certificates serve as critical documentation, proving that specific goods qualify for the reduced tariffs promised under the free trade agreement. The high volume of these certificates suggests that the administrative and commercial pathways are becoming well-traveled.
India as a Global Manufacturing and Innovation Hub
The milestones were discussed during the second India-EFTA Prosperity Summit, which brought together ministers and business leaders to mark the one-year anniversary of the pact. Union Minister Ashwini Vaishnaw highlighted a shift in how European entities perceive India's industrial landscape.
Vaishnaw noted that discussions have increasingly centered on deep-tech and business partnerships. He emphasized that European companies are no longer just looking at India as a consumer market, but as a vital manufacturing and innovation base. This shift is driving several key trends:
- Technology Exchange: Increased collaboration in co-developing and advancing new technologies.
- Localized Production: European firms are establishing design, research, and manufacturing bases within India.
- MSME Integration: Creating stronger links between Indian Micro, Small, and Medium Enterprises and EFTA-based businesses.
Government Initiatives to Boost FTA Utilisation
To ensure that Indian entrepreneurs can fully capitalize on this expanding network of free trade agreements, the Commerce Ministry is launching a series of grassroots engagement programs. The government plans to take the message of trade opportunities directly to the states.
In October, officials will conduct discussions with entrepreneurs and state governments across various state capitals. These high-level meetings will be followed by district-level workshops throughout the current financial year. Additionally, the government is setting up a dedicated FTA Utilisation Cell. This specialized unit will act as a resource hub, providing businesses with the necessary data and information to assess and seize opportunities available under various international trade pacts.