India-EFTA Trade Pact Set to Bring $100 Billion Investment and 1 Million Jobs

India-EFTA Trade Pact Set to Bring $100 Billion Investment and 1 Million Jobs

New Delhi, October 11, 2025:
The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into force on October 1, 2025, marking a landmark chapter in India's external trade relations. Signed on March 10, 2024, the agreement connects India with four developed European nations - Switzerland, Norway, Iceland, and Liechtenstein - under a framework designed to deepen economic integration, investment, and sustainable growth.

Historic Investment Commitment

TEPA includes a binding pledge of USD 100 billion in investments and the creation of one million direct jobs in India over the next 15 years - the first such commitment in any Indian free trade agreement. This initiative aligns with the government's Atmanirbhar Bharat and Make in India missions, focusing on manufacturing, innovation, and technology partnerships.

To support this, an India-EFTA Desk, operational since February 2025, has been established as a single-window platform for investors. The desk prioritizes sectors such as renewable energy, life sciences, digital transformation, and engineering, promoting joint ventures and SME collaborations.

Balanced Market Access and Safeguards

EFTA nations have offered tariff concessions on 92.2% of tariff lines, covering 99.6% of India's exports, while India has provided access on 82.7% of lines covering 95.3% of EFTA exports. Sensitive sectors like dairy, soya, coal, and select agricultural and pharmaceutical products remain protected under exclusion lists.

This balance allows India to expand its exports in machinery, organic chemicals, textiles, processed foods, electronics, and gems & jewellery, while giving domestic industries time to adjust through phased tariff reductions.

Boost to Services and Skilled Professionals

With services contributing over half of India's GVA, TEPA facilitates greater access for Indian professionals and service providers. The agreement promotes digital service delivery, commercial presence, and temporary mobility through Mutual Recognition Agreements (MRAs) in fields such as nursing, accountancy, and architecture.

This ensures smoother recognition of Indian qualifications across EFTA countries and boosts India's exports in IT, education, cultural, and media services.

Technology, IPR, and Sustainability

The IPR chapter under TEPA reinforces India's commitment to TRIPS standards, while safeguarding public health and access to affordable medicines. The agreement fosters cooperation in research, innovation, and intellectual property, particularly benefiting India's technology-driven sectors.

Sustainability remains a core pillar, with both sides agreeing to promote green growth, inclusive development, and fair trade practices through transparency and simplified trade procedures.

Sectoral and Country-Specific Gains

Indian exporters are expected to gain from zero or reduced tariffs in high-value markets across Europe.

• Switzerland: Duty elimination on food preparations, grapes, nuts, and confectionery.

• Norway: Tariff relief on rice, processed foods, and beverages.

• Iceland: Zero duty on processed foods, chocolates, and fresh vegetables.

• Liechtenstein: Opportunities in precision manufacturing and embedded electronics.

Additionally, marine products, chemicals, plastics, textiles, and electronics are expected to see significant export growth, supported by enhanced market predictability and reduced compliance costs.

Strategic Impact

The India-EFTA TEPA establishes India as a trusted and rule-based trade partner in Europe, diversifying its export base beyond traditional markets. It also strengthens India's role in global supply chains, promoting innovation-driven and sustainable industrial growth.

Conclusion

The India-EFTA Trade and Economic Partnership Agreement represents a transformative step in India's trade policy, combining economic ambition with strategic prudence. With commitments worth USD 100 billion in investment and 1 million direct jobs, TEPA reinforces India's emergence as a major global trade and innovation hub while deepening ties with Europe's most advanced economies.

Sources:
Ministry of Commerce and Industry | PIB Delhi | commerce.gov.in | PIB Press Release