India-EFTA Trade Deal Ratified, Implementation Set to Begin in Three Months

The submission of India’s Instrument of Ratification of the Trade and Economic Partnership Agreement (TEPA) at Norway’s Ministry of Foreign Affairs marks a pivotal advancement in the economic ties between India and the European Free Trade Association (EFTA). This move not only completes a crucial procedural step but also prepares the ground for the agreement’s enforcement, anticipated within the next three months. The development signals a strengthened partnership poised to reshape trade and investment flows across continents.

India formally deposited the ratification instrument for TEPA on July 22, 2025, with Norway as the designated depository of the treaty. In a post from the Indian Embassy in Norway on X, the mission noted: “India deposited the Instrument of Ratification of the Trade and Economic Partnership Agreement (TEPA) … which is the depository entity of TEPA,” and underlined that with all five parties now having submitted their ratification documents, “the treaty [is] to enter into force within the next three months.”. Such unified action reflects the concerted commitment of both India and the EFTA countries—Norway, Switzerland, Iceland, and Liechtenstein—to deepen their economic bonds.

First signed in New Delhi on March 10, 2024, after nearly sixteen years of rigorous negotiations, the TEPA exemplifies a modern and comprehensive trade pact. At the signing ceremony, India’s Commerce and Industry Minister Piyush Goyal was joined by his counterparts from EFTA countries, including Switzerland’s Federal Councillor Guy Parmelin and Norway’s Trade Minister Jan Christian Vestre. The TEPA covers goods, services, investment, intellectual property, government procurement, sustainable development, and dispute resolution—ensuring a wide-ranging framework to bolster trade and investment flows.

A cornerstone of the agreement is the commitment from EFTA members to invest USD 100 billion in India over the next fifteen years, alongside a goal to generate one million jobs. In tandem, India will extend significantly reduced or zero import duties on a defined suite of goods from EFTA countries—ranging from Swiss watches and chocolates to cut and polished diamonds. According to Commerce Minister Goyal, the pact “will be implemented from October 1,” highlighting a clear timeline for entry into force.

From the EFTA perspective, Guy Parmelin emphasized the mutual benefits of the agreement, stating that EFTA nations stand to gain access to “a major growth market,” while India will benefit from increased foreign investment and “good jobs”. He described the TEPA as a mechanism for making supply chains more resilient, which in turn supports businesses and employment on both sides.

For India, this agreement marks its first trade pact with a significant European bloc of developed countries. Goyal described it as a “landmark agreement,” and noted that the deal includes a “binding commitment of $100 billion investment and 1 million direct jobs in the next 15 years”. He also underlined that it would boost India’s exports in processed foods, IT services, education, and business services, aligning with the "Make in India" initiative.

The agreement is structured to furnish comprehensive tariff concessions: India has offered to liberalize over 82 percent of its tariff lines, covering more than 95 percent of EFTA’s exports; in return, EFTA has reciprocated with concessions on more than 92 percent of its tariff lines. However, both sides preserved sensitive sectors, notably agricultural goods, dairy, and gold, by excluding them from full liberalization. Additionally, the pact reaffirms India’s commitments under global environmental and labor conventions, including the Paris Agreement and International Labour Organization standards.

In Norway, Indian Ambassador Acquino Vimal has been actively advancing bilateral engagements in high-technology and innovation sectors. Earlier this month, he and Trond Skundberg of NICCI toured key Norwegian innovation hubs—including Bright House, Norwegian Cybersecurity Cluster, NTNU Gjøvik, and Raufoss Industripark—to explore collaboration in cybersecurity, industrial innovation, and research. These initiatives align with India’s broader industrial and technological ambitions, offering cross-border opportunities arising from the TEPA framework.

Another area of shared interest is energy and technology collaboration. India’s Petroleum and Natural Gas Minister Hardeep Puri has emphasized cooperation in deepwater exploration under Open Acreage Licensing Policy Round 10, where Norway’s expertise in subsea operations and drilling technology is expected to play a vital role. Other areas highlighted include offshore wind energy, carbon capture and storage—citing Norway’s Northern Lights CO₂ terminal—and blue hydrogen development via CCB Energy projects. These engagements reflect a pattern of synergy that both countries are keen to cultivate, building on the TEPA’s momentum.

In summary, the ratification deposit made in Oslo today not only formalizes India’s commitment but also sets a pathway toward comprehensive implementation beginning this October. As all five parties finalize their processes, the agreement promises to launch an era of strengthened economic cooperation—supporting trade diversification, supply-chain resilience, investment influx, job creation, and collaboration in emerging sectors.

In a messaging note, the Indian Embassy termed this a “landmark event which will herald greater trade and economic partnership between India and EFTA,” underscoring its diplomatic and strategic significance. As the agreement moves toward enforcement, it stands as a compelling achievement in bilateral diplomacy, heralding a mutually beneficial future rooted in shared economic growth and innovation.