India-EFTA Trade and Economic Partnership Agreement Comes into Force

The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into effect on October 1, 2025. The agreement was earlier signed on March 10, 2024, in New Delhi with the EFTA member states — Iceland, Liechtenstein, Norway, and Switzerland.

A First-of-its-Kind FTA for India

TEPA is described as a modern and ambitious trade deal, marking the first time India has incorporated commitments on investment and job creation in any Free Trade Agreement (FTA).

• Target: USD 100 billion in FDI inflows over the next 15 years.
• Goal: Facilitate creation of 1 million direct jobs in India.

Key Provisions

The agreement covers 14 chapters, focusing on:

• Market access for goods and services
• Rules of origin
• Trade facilitation and remedies
• Sanitary and phytosanitary (SPS) measures
• Technical barriers to trade (TBT)

Market Access Commitments

• EFTA’s Offer:
  • 92.2% of tariff lines, covering 99.6% of India’s exports.
  • 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP).
• India’s Offer:
  • 82.7% of tariff lines, covering 95.3% of EFTA exports.
  • Sensitive sectors such as pharma, medical devices, and processed food protected under PLI-linked considerations.

Opportunities Beyond Goods

TEPA extends beyond traditional goods and services trade, offering strong potential in:

• IT and business services
• Cultural and recreational services
• Education and audio-visual services

Improved access will be enabled via:

• Mode 1: Digital delivery of services
• Mode 3: Commercial presence
• Mode 4: Greater certainty for entry and temporary stay of key personnel