The India-EFTA Trade and Economic Partnership Agreement (TEPA), signed with Switzerland, Norway, Iceland, and Liechtenstein, officially entered into force on October 1, 2025, marking a, pivotal, binding, commitment to secure $100 billion in foreign direct investment (FDI) and create 1 million direct jobs in India over the next 15 years.
Key Implementation Highlights:
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- Market Access & Trade: EFTA countries offer duty-free access for 92.2% of Indian exports (covering 99.6% of goods), while India offers 82.7% of its tariff lines.
- Strategic Cooperation: The agreement covers trade in goods, services, and sustainable development, with a specific focus on boosting India’s manufacturing capabilities under ‘Make in India’ and achieving $1 trillion in merchandise exports by 2030.
- Investment Desk: An India–EFTA Desk has been established to facilitate these investments, acting as a single-window platform for collaborations.
The agreement is viewed as a landmark for India, representing its first comprehensive FTA with developed European nations that guarantees, specific, future, investment, inflows.
THE EUROPEAN FREE TRADE ASSOCIATION (EFTA)The European Free Trade Association (EFTA) is an intergovernmental organization established in 1960 to promote free trade and economic integration between its members, currently Iceland, Liechtenstein, Norway, and Switzerland. Headquartered in Geneva, it manages relations with the EU via the EEA and negotiates global free trade agreements. Key Aspects of EFTA:
EFTA serves as a vital economic pillar in Europe, operating alongside the EU to facilitate trade and economic cooperation. |
