The India–EFTA Trade and Economic Partnership Agreement (TEPA) has marked India’s first free trade pact with four developed European nations. It promises $100 billion in investments and one million new jobs within 15 years, strengthening India’s manufacturing and export competitiveness.
The pact, effective from October 1, expands market access for goods and services while promoting ‘Make in India’ and ‘Atmanirbhar Bharat’. It covers 14 chapters, including trade facilitation, intellectual property, sustainable development, and investment promotion. Key sectors such as dairy, coal, and agriculture remain protected under the deal.
The four EFTA nations — Switzerland, Norway, Iceland, and Liechtenstein — pledged $50 billion FDI in 10 years and another $50 billion later. These long-term investments target innovation, research, and high-value manufacturing, expected to generate one million direct jobs in India.
A dedicated India–EFTA Desk was launched in February 2025 to assist investors. It will promote collaborations in renewable energy, engineering, digital transformation, and life sciences. With services contributing over 55% to India’s GVA, TEPA strengthens trade in digital and professional services, driving inclusive and sustainable growth.
