With India and the four-nation European bloc comprising Switzerland, Norway, Iceland, and Liechtenstein entering into a historic Trade and Economic Partnership Agreement (TEPA), the two sides’ trade landscape is poised for a transformation.
According to a government release, this India-European Free Trade Association (EFTA) pact, which was signed on March 10, 2024, and officially came into effect on October 1, 2025, is not only India’s first free trade agreement (FTA) with the four developed European nations, it is also the first time that any FTA signed by India includes binding commitments on investment and job creation.
Under the agreement, the EFTA nations have pledged to attract USD 50 billion in investments within the first ten years and an additional USD 50 billion over the next five years. The investments and consequent generation of one million direct jobs over the next fifteen years will mostly focus on sectors such as renewable energy, life sciences, digital transformation, and engineering. To facilitate these, a dedicated India-EFTA Desk has also been set up as a single-window platform for investors.
Also Read: India-EFTA trade pact to take effect on Oct 1
While EFTA has offered tariff concessions on 92.2 per cent of tariff lines, covering 99.6 per cent of India’s exports; India has granted access on 82.7 per cent of tariff lines, representing 95.3 per cent of EFTA’s exports. In services, where India already holds a strong global position, the pact offers wider access in 105 sub-sectors. However, India has placed its sensitive sectors like dairy, soya, coal, and select agricultural products in protection.
The agreement also includes ‘Mutual Recognition Agreements’ in key professions, such as nursing, accountancy, and architecture, which will facilitate easier movement of skilled workers and professionals between India and EFTA countries.
The pact’s intellectual property provisions reaffirm both sides’ commitment to innovation while maintaining India’s flexibility to protect affordable medicines. The release noted that this balance strengthens trust and cooperation between “India’s skilled workforce and Europe’s technology ecosystems”.
Indian exports of coffee, tea, machinery, marine products, manufacturing and processed foods are likely to see a boost, as EFTA countries eliminate or reduce tariffs on most of these goods. Engineering, textiles, electronics, and chemical industries will also benefit from improved market access and simplified trade procedures.
The release stated that more than being just a trade deal, TEPA is a partnership founded on confidence and mutual growth. By combining India’s expanding industrial base with EFTA’s technological expertise, the pact is poised to usher in a new era of cooperation centred on sustainability, innovation, and job creation.
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