INDIA–EFTA PARTNERSHIP: “ONE PLUS ONE EQUALS THREE”

NEWS: India–European Free Trade Association Trade and Economic Partnership Agreement (TEPA) entered into force on 1 October 2025.

ABOUT EFTA

  • European Free Trade Association (EFTA) → Iceland + Liechtenstein + Norway + Switzerland.
  • Focus → free trade + economic integration.
  • Different from the European Union, which has broader political + economic integration.

TEPA

  • EFTA → concessions on 92.2% tariff lines, covering 99.6% of India’s exports to EFTA.
  • India → concessions on 82.7% tariff lines, covering 95.3% of EFTA exports to India.
  • EFTA aims to invest $100 billion in India over 15 years → facilitate 1 million direct jobs.

INDIA–ICELAND COOPERATION

  • Geothermal energy → useful for India’s Himalayan geothermal belt.
  • Carbon Capture, Utilisation and Storage (CCUS) → Iceland’s CarbFix technology can convert captured carbon dioxide into stable minerals.
  • E-methanol → captured carbon dioxide + green hydrogen → fuel.

FISHERIES + BLUE ECONOMY

  • Icelandic expertise → sustainable fisheries + cold-chain + seafood processing.
  • Greater utilisation of fish waste → medical products + oils + animal feed.
  • India → potential for value addition + jobs + exports.

ARCTIC COOPERATION

  • Iceland → Arctic State + founding member of Arctic Council.
  • India → Observer in Arctic Council since 2013 + Himadri research station in Svalbard.
  • Cooperation → Arctic research + climate change + governance.

“ONE PLUS ONE EQUALS THREE”

TEPA + EU–India cooperation → trade + investment + technology + jobs + clean energy + fisheries + Arctic cooperation.

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