India Sets New Trade Milestone with EFTA’s $100 Billion Investment Commitment

The India-EFTA Trade and Economic Partnership Agreement (TEPA) officially entered into force on October 1, 2025, following the Prosperity Summit held in New Delhi. The landmark agreement with Switzerland, Norway, Iceland, and Liechtenstein marks India's first trade pact with European nations and establishes a comprehensive framework for economic cooperation.

Comprehensive Market Access and Sectoral Opportunities

The agreement opens wide-ranging opportunities across diverse sectors including life sciences, clean energy, precision engineering, and food processing. Additional areas of cooperation encompass technology, artificial intelligence, accountancy and nursing, education, audio-visual services, culture, tourism and recreation.

Specific bilateral partnerships include geothermal energy collaboration with Iceland, shipbuilding, repair, container manufacturing and maritime services in partnership with Norway, and innovation, research and development, and advanced manufacturing in collaboration with Swiss and Liechtenstein companies.

Under the market access provisions, EFTA has offered concessions on 92.2% of tariff lines encompassing 99.6% of India's exports, including 100% of non-agricultural products and tariff concessions on Processed Agricultural Products. India, in turn, has offered concessions on 82.7% of tariff lines, covering 95.3% of EFTA exports.

Economic Complementarities

Minister Goyal highlighted the complementarities between "Indian scale, aspirations and talent, and EFTA's innovation and financial strength". He emphasized India's competitive cost structures, citing that "data costs in India are only 3% of those in the US and less than 10% of the global average". The Minister noted the emergence of "nearly 2,500 global capability centres in India that support Fortune 500 companies worldwide".

Referencing the successful track record of Swiss companies, Goyal recalled "the legacy of Swiss companies like ABB and Nestlé in India" and illustrated how India has "not only provided a strong market base but has also become a hub for global expansion". He pointed out that "the high price-to-earning ratios of companies like Nestlé India and ABB India reflect the immense potential and confidence of markets in India's future growth".

Investment Facilitation and Business Environment

Inviting businesses from EFTA nations, Goyal assured them of "India's open, transparent and investor-friendly environment, with 100% FDI allowed in almost all sectors of interest". He encouraged partnerships of various kinds, "equity, technical collaborations, or cooperative frameworks", to leverage India's opportunities. The Minister affirmed that "the Government of India is committed to ensuring smoother, faster and more efficient pathways for investors".

Goyal emphasized that TEPA is "not merely about tariff reduction or investment commitment, but about establishing a stable, predictable and trusted framework that boosts investor confidence, reduces costs of uncertainty, and signals to the world that India and EFTA are committed to sustainable growth".

Official Perspectives from EFTA Representatives

Swiss State Secretary for Economic Affairs, Helene Budliger Artieda, described the agreement as "more than a legal document," stating that "It is a win-win partnership for our countries". She highlighted the business commitment, noting that "The strong presence of companies from Switzerland and other EFTA countries at today's prosperity summit speaks for itself. These businesses are here because they believe in India and are ready to use the Trade and Economic Partnership Agreement".

Artieda emphasized the economic synergies, stating that "Swiss and Indian economies are complementary. The TEPA will bring these complementarities together for the benefit of both Switzerland and India".

Norway's Ambassador to India, May-Elin Stener, expressed enthusiasm about the partnership, stating that "it is a very good day for India-Norway relations as the two nations are entering into the India-EFTA agreement". She noted that "India is the fourth-largest economy in the world and is aiming to become a developed country by 2047. Norway wants to be a part of this journey".

Implementation Strategy and Sectoral Focus

Commerce Secretary Rajesh Agrawal described the operationalization of TEPA as "a strong signal of collective wisdom and will to strengthen free and fair trade". He observed that the agreement "marks not just a trade arrangement but the beginning of a new era of shared growth, innovation and prosperity". Emphasizing India's emergence as "the world's fourth largest economy on course to becoming the third," he noted that "the investment commitments under TEPA reflect global confidence in the India story".

The implementation framework includes laying sector roadmaps and deepening exports in engineering, pharmaceuticals and medical technology, food processing, textiles and apparel, and marine sectors. There will be outreach efforts for MSME onboarding with matchmaking and skills modules on quality, packaging and sustainability for tangible outcomes. The agreement emphasizes facilitating logistics to reduce port dwell times and compress transit times, while both sides will monitor FTA utilisation, expanding investments, and services outcomes.

Power of Five Framework

The agreement harnesses what officials term the "Power of Five (Panch)," clarifying roles and complementarities among the partner nations. India brings scale, demand and skilled talent, while Switzerland contributes precision manufacturing, finance and capital goods. Norway provides maritime competence and clean energy expertise, Iceland offers niche clean-tech and digital ingenuity, and Liechtenstein brings high-value manufacturing and specialized engineering. This partnership framework is designed to compound trade, investment and technology flows over the next two to three decades.

Benefits for Indian Stakeholders

The agreement creates specific advantages for various Indian sectors. Farmers and agri-marine exporters gain tariff advantages and premium-market positioning in specialty coffees, marine products and selected fresh and processed foods. MSMEs are expected to benefit from standards cooperation and lab-onboarding that would reduce duplicative testing and compliance costs, plus buyer-supplier matchmaking and skilling support.

Services exporters gain clearer channels for digital delivery (Mode 1), commercial presence (Mode 3) and predictable professional mobility (Mode 4), with pathways for Mutual Recognition Agreements for professionals. The agreement includes commitments in over 100 sub-sectors covering IT, education, audio-visual, and business services.

Long-term Vision

Minister Goyal connected the agreement to India's philosophical framework, linking it to "India's philosophy of Antyodaya (Integral Humanism), emphasising that prosperity must reach the last person at the bottom of the pyramid". He stated that "India's partnership with EFTA nations will contribute to better quality of life, inclusive growth, sustainability and a stronger global economic order".

Concluding his address, Goyal described TEPA as "an endless partnership" that marks "only the beginning of a long, prosperous journey" that "will continue for generations to come and lay the foundation of India's deep engagement with Europe".