The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into effect on October 1, 2025, marking a significant milestone in India’s global trade relations. This landmark pact represents India’s first Free Trade Agreement with four advanced European economies—Switzerland, Norway, Iceland, and Liechtenstein—and introduces binding commitments on investment and job creation, setting it apart from previous trade deals.
Under the agreement, EFTA has pledged a substantial $100 billion investment over the next 15 years, expected to generate one million direct jobs in India. The TEPA framework promotes balanced trade growth by reducing barriers and providing extensive market access. EFTA countries have eliminated tariffs on 92.2% of goods, which together account for 99.6% of India’s exports, while India has reciprocated by opening its market to 82.7% of EFTA products, representing 95.3% of their total exports.
Sensitive sectors such as dairy, coal, pharmaceuticals, and agriculture have been shielded from immediate liberalization through phased tariff adjustments and strategic exclusions, ensuring domestic industries remain protected. The pact also expands cooperation in services trade, improving professional mobility and establishing Mutual Recognition Agreements (MRAs) in professions like nursing, accountancy, and architecture.
TEPA is poised to stimulate growth across diverse industries, including machinery, engineering goods, processed foods, marine products, electronics, textiles, and gems and jewelry. It also emphasizes technology collaboration, intellectual property safeguards, and sustainable development, complementing national initiatives such as Make in India and Atmanirbhar Bharat.
The deal’s zero-duty concessions from EFTA—particularly in processed foods, engineering goods, and marine exports—will enhance India’s competitiveness in global markets. Meanwhile, the substantial $100 billion investment is expected to strengthen domestic manufacturing, promote innovation, and support economic diversification.
Beyond trade, the partnership deepens strategic and technological ties between India and EFTA nations, promoting inclusive and environmentally responsible economic growth. Analysts view TEPA as a blueprint for future trade models that combine market access with long-term investment and employment goals.
By reinforcing India’s image as a trusted global trading partner, the India-EFTA TEPA lays the foundation for sustainable prosperity and positions the country as a central player in international commerce and innovation-driven growth.
