SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Directorate General of Foreign Trade | EFTA countries
India’s Free Trade Agreement (FTA) with the EFTA countries (Iceland, Liechtenstein, Norway, Switzerland) - finalized in March 2024 -will officially enter into force on October 1, 2025, announced Union Commerce & Industry Minister Piyush Goyal at the culmination of the UP International Trade Show. He also noted that India is in trade negotiations with the US, New Zealand, Oman, Peru, Chile, and has finalized the Terms of Reference with Eurasia. In the same speech, Goyal highlighted that the One District One Product (ODOP) initiative has now expanded to 750+ districts, supporting local industries in khadi, cotton, and cottage sectors. He urged participants to embrace the “Vocal for Local, Local Goes Global” ethos to strengthen domestic manufacturing and exports.
The EFTA FTA unlocks lower-tariff access to high-income European markets for Indian goods and services, signaling a shift from mercantilist trade posture to bidirectional engagement. It also supports India’s export diversification strategy and embeds “Vocal for Local” firms into global value chains. Further, the simultaneous expansion of ODOP indicates synergy between trade diplomacy and district-level enterprise promotion.
What is a mercantilist trade posture?
→ Mercantilism is a traditional trade approach where countries prioritise exporting more than they import, hoarding foreign exchange and protecting domestic markets. India has often leaned this way — cautious on imports, aggressive on exports. By entering a broad FTA like with EFTA, India signals a willingness to move from defensive mercantilism to reciprocal market access.
What is ODOP?
→ One District One Product (ODOP) is an initiative under the Ministry of Commerce & Industry that identifies a unique product (e.g., textile, handicraft, agro-produce) from each district and promotes it with branding, skilling, credit, and export support. It links small producers and artisans with larger markets, making “local” industries export-ready.
Relevant Question for Policy Stakeholders:
How can India ensure that local MSMEs benefiting from ODOP are trade-ready (quality, standards, logistics) to fully utilise the EFTA FTA without exacerbating regional disparities or concentration of gains?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2172704