India–EFTA Trade and Economic Partnership Marks Second Anniversary

In New Delhi on 10 March 2024, India and the European Free Trade Association (EFTA) – comprising Iceland, Liechtenstein, Norway and Switzerland – signed a Trade and Economic Partnership Agreement (TEPA). The agreement entered into force on 1 October 2025. According to official statements, TEPA spans 14 chapters covering market access for goods, rules of origin, trade facilitation and remedies, sanitary and phytosanitary measures, technical barriers to trade, investment, services, intellectual property rights, and trade and sustainable development. On the pact’s second anniversary, government releases highlight these core provisions and the agreement’s strategic goals.

Historic Partnership and Signatories

India’s Union Cabinet approved TEPA as the country’s first free trade agreement with all four EFTA nations. Officials noted that the commerce ministers of India and the EFTA states signed the pact in New Delhi, marking a new chapter in India’s trade relations with these developed European economies. At the signing ceremony, Commerce Minister Piyush Goyal described the agreement as “modern and ambitious” and highlighted its unprecedented inclusion of binding commitments: US$ 100 billion in additional investment and one million direct jobs in India over the next 15 years.

Overview of the key trade impacts of the India–EFTA Trade and Economic Partnership Agreement

Scope and Key Provisions

The TEPA encompasses extensive trade provisions. Its 14 chapters cover market access for goods and services, investment promotion, intellectual property and measures for trade facilitation and sustainable development. The pact aims to eliminate most tariffs and streamline customs procedures. Notably, the EFTA partners offered duty concessions on about 92.2% of their tariff lines, covering 99.6% of India’s exports, while India granted liberal access on roughly 82.7% of its tariff lines, with safeguards for sensitive items.

Services commitments include new openings in sectors such as information technology, business and education, and cultural and audio-visual services. An intellectual property chapter maintains WTO-TRIPS standards, balancing innovation protection with India’s public health interests. The agreement also emphasises sustainable development and inclusive growth, underscoring commitments to transparent and efficient trade procedures as well as environmental protection.

Investment and employment commitments under the India–EFTA Trade and Economic Partnership Agreement (TEPA)

Investment and Economic Commitments

A defining feature of TEPA is its legally binding investment and employment targets. Under Article 7.1, the four EFTA states pledged to increase their foreign direct investment in India by US$ 50 billion within 10 years and an additional US$ 50 billion over the following five years, amounting to US$ 100 billion over 15 years. These inflows are tied to the goal of creating one million direct jobs in India.

The commitment explicitly excludes portfolio investment, focusing instead on long-term capital for productive ventures. Government sources note that these targets are unprecedented in any Indian trade pact and align with India’s objectives of boosting manufacturing and export-led growth. A Commerce Ministry note states that TEPA will “empower India’s exporters by providing access to specialised inputs” and help broaden market opportunities for Indian goods and services.

Government releases indicate that the accord is expected to significantly deepen India’s trade and investment ties with EFTA and create new opportunities for exporters, businesses and workers. As the agreement marks its two-year milestone, officials reaffirm that TEPA’s provisions support India’s broader economic goals of enhancing competitiveness, diversifying markets and fostering sustainable growth.