The Trade and Economic Partnership Agreement (TEPA) between India and the member states of the European Free Trade Association (EFTA) has completed two years since its signing, marking a significant step in expanding trade, investment and technology collaboration between the partners.
The agreement, signed with EFTA members – Iceland, Liechtenstein, Norway and Switzerland – moved from negotiation to implementation on October 1, 2025. The pact aims to strengthen economic cooperation through increased trade, investment flows, services collaboration and long-term industrial partnerships.
Highlighting the broader trade strategy, Prime Minister Narendra Modi said India has built a “strategic and purposeful network of Free Trade Agreements” in recent years. India now has FTAs with 38 partner nations, expanding global market access for Indian businesses and strengthening the country’s integration with global supply chains.
PM Modi noted that the agreements create greater opportunities for India’s services sector, which has already made the country a hub for global capability centres across multiple industries.
Union Commerce and Industry Minister Piyush Goyal described the India-EFTA agreement as a long-term economic partnership that opens access for Indian exporters to high-income markets while creating a $100 billion investment pathway over the next 15 years.
He said the pact will also improve access to specialised machinery, quality inputs and technology partnerships that could strengthen domestic manufacturing and enhance value addition in Indian industries.
Under the agreement, EFTA countries have committed to tariff concessions on 92.2 per cent of tariff lines, covering 99.6 per cent of India’s exports, including full coverage of non-agricultural products and concessions on processed agricultural goods. India, in turn, has offered tariff commitments covering 82.7 per cent of tariff lines, accounting for 95.3 per cent of EFTA exports.
Sensitive sectors such as dairy, soya, coal and certain agricultural products remain protected under the arrangement, while the effective duty on gold remains unchanged.
The Ministry of Commerce & Industry said the agreement is expected to strengthen India’s export presence in sectors including pharmaceuticals, textiles and garments, engineering goods, chemicals, processed foods and marine products. At the same time, it will enable Indian manufacturers to access advanced machinery, precision components and specialised industrial inputs from EFTA countries.
The deal also aligns with India’s broader export ambitions. The government has set a target of achieving $1 trillion in merchandise exports and $1 trillion in services exports by 2030, with TEPA expected to support this goal by providing predictable access to developed markets and encouraging investment-led industrial growth.
A key feature of the agreement is the $100 billion investment commitment, which is expected to facilitate one million direct jobs through investments in sectors such as manufacturing, renewable energy, life sciences, engineering, research and development and digital technologies.
The pact also includes provisions to enhance cooperation in IT and IT-enabled services, professional services and other knowledge-intensive sectors. It allows for the development of Mutual Recognition Agreements in professions such as nursing, chartered accountancy and architecture, while enabling easier temporary mobility of professionals.
The agreement is also expected to benefit small businesses and local producers across India. Women and youth entrepreneurs, farmers, fishers, MSMEs and start-ups could gain better access to high-value European markets.
The Ministry noted that several Indian states stand to benefit, including Maharashtra for grapes, Karnataka for coffee, Kerala for spices and seafood, and the North Eastern states for horticulture products.
As implementation of the pact progresses, India and EFTA countries are expected to continue working through institutional mechanisms and business engagements to expand trade flows, attract investments and strengthen economic cooperation. The agreement is seen as part of India’s broader strategy to boost exports, deepen manufacturing capabilities and advance the vision of a developed nation by 2047.
