India-EFTA Trade Pact Set To Drive $100 Billion Investment, Create 1 Million Jobs
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The India–EFTA TEPA, signed in March 2024 and effective October 2025, promises USD 100 billion investment, 1 million jobs, and major tariff concessions.
Business
The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), which was signed on March 10, 2024, came into force on October 01, 2025. The EFTA is expected to boost USD 100 billion in investments and 1 million direct jobs over 15 years, marking the first binding pledge of its kind in any Indian FTA.
India’s exports to EFTA, valued at $72.37 million in FY 2024–25, are dominated by guar gum, processed vegetables, basmati rice, pulses, fruits, and grapes.
The EFTA is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 by its then 7 Member States for promotion of free trade and economic integration between its members.
This is India’s first Free Trade Agreement with four developed European nations, Switzerland, Norway, Iceland, and Liechtenstein.
Protection Of Sensitive Sectors
EFTA has offered tariff concessions on 92.2% of tariff lines, covering 99.6% of India’s exports, including all non-agricultural goods and processed agricultural products.
India, in turn, has extended access on 82.7% of tariff lines, accounting for 95.3% of EFTA exports, but with strong safeguards.
Sensitive sectors such as dairy, soya, coal, pharmaceuticals, medical devices, and select food products have been kept in the exclusion list. For products under flagship programmes like Make in India and the Production Linked Incentive (PLI) Scheme, tariff reductions are phased over 5–10 years, giving domestic industries time to strengthen before full competition opens.
Exchange In Knowledge And Digital Services
With a heavy weightage of service sector contributing over 55 per cent to India’s Gross Value Added (GVA), the treaty gives a gateway for exchange in knowledge and digital services.
India has made commitments in 105 sub-sectors, while EFTA’s offers cover 128 from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein. This includes key Indian strengths such as IT and business services, education, media, cultural, and professional services.
Mutual Recognition Agreements (MRAs), an element in the treaty, allow smoother professional mobility in professions like nursing, chartered accountancy, and architecture.
TEPA’s Intellectual Property Rights (IPR) provisions focuses on protecting IP rights of products of both countries.
Varun Yadav is a Sub Editor at Business Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at Business Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
October 12, 2025, 12:50 IST
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