New Delhi: India’s trade relations entered a historic new chapter as the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA)—signed on March 10, 2024—officially came into force on October 1, 2025.
According to a government statement, TEPA marks India’s first Free Trade Agreement with four developed European nations — Switzerland, Norway, Iceland, and Liechtenstein. The pact is expected to generate USD 100 billion in investments and create one million direct jobs over the next 15 years.
Under the agreement, EFTA countries have pledged to mobilize USD 50 billion in investments within the first decade, followed by another USD 50 billion in the subsequent five years. These funds will primarily target renewable energy, life sciences, digital transformation, and engineering sectors. To streamline the process, an India-EFTA Desk has been established as a single-window platform for investors.
The agreement ensures balanced market access for both sides. EFTA has granted tariff concessions on 92.2% of tariff lines, covering 99.6% of India’s exports, while India has reciprocated on 82.7% of tariff lines, accounting for 95.3% of EFTA exports. Sensitive sectors such as dairy, soya, coal, and select agricultural products remain protected.
In the services sector—where India already maintains a global edge—the pact provides enhanced access in 105 sub-sectors. It also introduces Mutual Recognition Agreements (MRAs) for key professions like nursing, accountancy, and architecture, facilitating easier mobility for skilled professionals between India and EFTA member nations.
On intellectual property rights, TEPA reinforces the partners’ shared commitment to innovation while preserving India’s flexibility to safeguard access to affordable medicines. The government noted that this balance will strengthen collaboration between India’s skilled talent pool and Europe’s technology-driven ecosystems.
Sectors such as agriculture, marine products, and manufacturing are expected to gain substantially. Indian exports of coffee, tea, machinery, and processed foods will benefit as EFTA nations reduce or eliminate tariffs. Industries including engineering, textiles, electronics, and chemicals are also set to grow under simplified trade and regulatory procedures.
Describing the agreement as “more than just a trade deal”, the government said TEPA represents a partnership based on trust, innovation, and sustainable development, combining India’s manufacturing strength with EFTA’s technological prowess.
Notably, TEPA is the first FTA signed by India that includes binding commitments on both investment and job creation, making it a landmark achievement in India’s trade diplomacy.
