BR Bureau
The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) will officially come into force on October 1, 2025. Signed on March 10, 2024, in New Delhi, TEPA is India’s first free trade agreement to include binding commitments on investment and job creation.
The agreement comprises 14 chapters covering goods, services, investment, intellectual property, sustainable development, and trade facilitation. EFTA’s market access under TEPA spans 100% of non-agricultural products and tariff concessions on processed agricultural goods, while India has protected sensitive sectors including pharma, medical devices, dairy, and coal.
A landmark feature of TEPA is the investment and employment commitment: EFTA members—Switzerland, Norway, Iceland, and Liechtenstein—will aim to increase FDI inflows into India by USD 100 billion over 15 years (USD 50 billion within 10 years, plus USD 50 billion in the following 5 years). These inflows are expected to generate 1 million direct jobs, focusing exclusively on long-term, productive investments rather than portfolio inflows.
TEPA also promotes services trade, providing opportunities for India in IT, business services, education, audio-visual industries, and professional mobility. Mutual Recognition Agreements (MRAs) in areas such as nursing, chartered accountancy, and architecture will further enable Indian professionals to access EFTA markets.
EFTA is one of Europe’s three major economic blocs, alongside the EU and the UK, with Switzerland as India’s largest EFTA trading partner. TEPA is expected to strengthen India’s export competitiveness, attract high-quality investments, and create a more conducive environment for innovation-led growth.
