India, Oct 11 : In a historic milestone for India’s global trade relations, the India European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into effect on October 1. The pact marks India’s first-ever Free Trade Agreement with four developed European countries Switzerland, Norway, Iceland, and Liechtenstein.
The TEPA is expected to unlock $100 billion in investments and generate one million direct jobs in India over the next 15 years, making it one of the most ambitious and transformative trade deals in India’s economic history.
Under the agreement, EFTA nations have offered tariff concessions on 92.2% of tariff lines, covering 99.6% of India’s exports, particularly benefiting sectors such as agriculture, marine products, electronics, and textiles.
Key Features of the TEPA:
Massive Investment Commitment:
EFTA countries will invest $50 billion in the first 10 years and an additional $50 billion in the following five years to boost India’s industrial and economic growth.
Export and Services Boost:
The pact opens new markets for IT, education, media, and business services, with Mutual Recognition Agreements (MRAs) facilitating smoother mobility for skilled professionals.
Focus on Sustainable Growth:
The agreement emphasizes technology transfer, clean energy cooperation, and inclusive development, aligning closely with Make in India and Atmanirbhar Bharat goals.
Prime Minister Narendra Modi hailed the pact as a “game-changer” that would enhance India’s competitiveness, attract high-value investments, and create employment opportunities across diverse sectors.
As India deepens its global trade footprint, the India–EFTA TEPA stands as a strategic partnership for sustainable growth, bridging India’s economic potential with European innovation and investment.