India-EFTA TEPA

EVOLVING GLOBAL TRADE PACTS: CHALLENGES AND WAY FORWARD FOR INDIA

Modern trade pacts now set rules on environment, labour, and digital commerce, not just tariffs. Deals like the India–EFTA TEPA expand market access and investment, but raise compliance costs for MSMEs. Measures such as the EU’s CBAM risk protectionism, challenging India’s policy autonomy.

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IN THE NEW WORLD ORDER, ECONOMIC POLICY IS ALSO FOREIGN POLICY

Globalization is shifting from efficiency to security-led geoeconomics, where trade and finance serve strategic goals. Trends like SWIFT weaponization, friend-shoring, and tech restrictions define this new order. For India, China+1 and PLIs offer gains, but CBAM pressures and tech gaps persist, requiring tight alignment of economic reforms with foreign policy.

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India–EFTA TRADE & ECONOMIC PARTNESHIP AGREEMENT (TEPA): SIGNIFICANCE, CHALLENGES, WAY FORWARD

The India-EFTA TEPA pledges $100 billion FDI and 1 million jobs, boosting “Make in India” and “Atmanirbhar Bharat.” While it strengthens India’s trade and innovation profile, challenges like data exclusivity and trade imbalances must be managed to ensure balanced, equitable, and sustainable long-term growth.

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