India–EFTA TEPA Marks Two Years

Two years after its signing, the India–EFTA Trade and Economic Partnership Agreement (TEPA) between India and the member states of the European Free Trade Association (EFTA) has moved from the negotiation stage to implementation. The agreement came into effect on 1 October 2025, marking a major milestone in India’s trade diplomacy.

EFTA comprises Iceland, Liechtenstein, Norway, and Switzerland—a group of advanced European economies known for high innovation and strong industrial capacity.

The pact establishes a framework to strengthen trade, investment, services, technology collaboration, and long-term industrial growth between India and these countries. It is regarded as one of India’s most significant trade agreements with high-income economies.

Key Provisions of the Agreement

• EFTA commitments:
  • Cover 92.2% of tariff lines
  • Account for 99.6% of India’s exports to EFTA countries
  • Provide full coverage of non-agricultural products and concessions on processed agricultural products
• India’s commitments:
  • Cover 82.7% of tariff lines
  • Account for 95.3% of EFTA exports to India
• Protected sectors:
  Sensitive sectors such as dairy, soya, coal, and select agricultural products remain protected. The effective duty on gold remains unchanged.

Investment and Employment Impact

The agreement also includes a commitment of USD 100 billion in investment over 15 years, with the potential to generate around one million direct jobs in India.

Strategic Significance

The partnership is expected to support India’s broader trade ambitions, including the government’s target of USD 1 trillion in merchandise exports and USD 1 trillion in services exports by 2030.

Source: PIB