Two years after the signing of the Trade and Economic Partnership Agreement (TEPA) between India and the member states of the European Free Trade Association — Iceland, Liechtenstein, Norway and Switzerland — the partnership has transitioned from negotiations to implementation, effective October 1, 2025. The agreement connects India with a group of advanced European economies under a framework aimed at promoting trade, investment, services, technology cooperation and long-term industrial growth.

Prime Minister Narendra Modi highlighted that India has built a strong network of Free Trade Agreements spanning 38 partner nations, providing Indian manufacturers access to diverse global markets. He noted that these agreements have opened major economies for Indian goods and services, strengthened global supply chain integration and expanded opportunities for professionals, while enhancing regulatory certainty and mobility.

Marking the second anniversary of TEPA, Union Commerce and Industry Minister Piyush Goyal said the pact offers Indian exporters access to high-income markets and creates an investment pathway of USD 100 billion over 15 years. He added that the agreement also enables access to specialised machinery, advanced inputs and technology partnerships, strengthening India’s manufacturing competitiveness and supporting the country’s export ambitions for 2030.

The India–EFTA TEPA is considered one of India’s most significant trade agreements with innovation-driven, high-income economies. It complements India’s broader trade strategy aimed at benefiting farmers, fishermen, MSMEs and start-ups, while promoting investments and job creation. The agreement is expected to encourage technology transfers, joint ventures and collaborations with niche European firms, helping Indian enterprises move up the global value chain.

Under the agreement, EFTA countries have committed to covering 92.2% of tariff lines, accounting for 99.6% of India’s exports, including full coverage for non-agricultural goods and concessions on processed agricultural products. India, in turn, has offered commitments on 82.7% of tariff lines, covering 95.3% of EFTA exports. Sensitive sectors such as dairy, soya, coal and select agricultural products remain protected, while duties on gold remain unchanged.

The pact strengthens India’s presence in high-income markets by securing access for pharmaceuticals, textiles, garments, engineering goods, chemicals, processed foods and marine products. It also facilitates imports of specialised machinery, precision components and high-standard industrial inputs, helping domestic manufacturers improve efficiency, quality and global competitiveness.

Aligned with India’s export target of USD 1 trillion each in merchandise and services exports by 2030, TEPA combines predictable market access with investment-led capacity building and stronger industrial linkages. The agreement includes an investment commitment of USD 100 billion over 15 years and is expected to facilitate the creation of one million direct jobs.

The pact also enhances cooperation in services such as IT and IT-enabled services and professional sectors. It enables Mutual Recognition Agreements in selected professions including nursing, chartered accountancy and architecture, while providing clearer norms for the temporary movement of professionals.

TEPA is expected to promote inclusive growth by expanding export opportunities for women and youth entrepreneurs, farmers, fishers, MSMEs and start-ups. Several Indian states are likely to benefit, including Maharashtra for grapes, Karnataka for coffee, Kerala for spices and seafood, and northeastern states for horticulture products.

As implementation progresses, India and EFTA nations will continue institutional coordination and business engagement to convert the agreement into stronger trade flows, higher investments and deeper economic cooperation, supporting India’s long-term vision of becoming a developed nation by 2047.