The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) has officially come into force, marking a significant milestone in India's economic engagement with Europe. Union Minister for Commerce and Industry, Piyush Goyal, has lauded the successful conclusion of the agreement, emphasizing that India is engaging with the world from a position of strength.

The TEPA aims to reduce or eliminate tariffs on the majority of goods traded between India and the EFTA countries, while also liberalizing trade in services and investment. The EFTA states include Iceland, Liechtenstein, Norway, and Switzerland. The agreement was signed on March 10, 2024, after 16 years of negotiations.

Goyal highlighted that the TEPA is a defining moment in India's economic relations with Europe, calling it "a trusted partnership between friends" built on mutual respect and sensitivities. He also pointed out that it is the first trade agreement to incorporate a firm investment commitment, ensuring balance and fairness between the partners.

The agreement includes an investment objective of USD 100 billion over the next 15 years and the facilitation of creating one million direct jobs in India. It also provides wider access to goods and services across the EFTA countries. Goyal assured businesses from EFTA nations of India's open, transparent, and investor-friendly environment, with 100 percent Foreign Direct Investment allowed in almost all sectors of interest. He affirmed the Indian government's commitment to ensuring smoother, faster, and more efficient pathways for investors.

The Minister emphasized that the TEPA is not merely about tariff reduction or investment commitment. Instead, it is about establishing a stable, predictable, and trusted framework that boosts investor confidence, reduces the costs of uncertainty, and signals to the world that India and EFTA are committed to sustainable growth.

The agreement is expected to unlock opportunities across various sectors including life sciences, clean energy, Artificial Intelligence (AI), education, and tourism.

Ambassador of Norway to India, May-Elin Stener, stated that the agreement marks a very good day for India-Norway relations. She noted India's position as the fourth-largest economy in the world, with aspirations to become a developed country by 2047, and expressed Norway's desire to be a part of this journey.

Swiss State Secretary described TEPA as a win-win partnership for India and Switzerland. He said that the Swiss and Indian economies are complementary and that the TEPA will bring these complementarities together for the benefit of both countries.

The India-EFTA TEPA includes a dedicated chapter on trade and sustainable development with legally binding commitments on environmental protection and labor standards. This is the first time India has agreed to such enforceable provisions in a trade agreement. The agreement also includes a robust IP chapter.

Commerce Secretary Shri Rajesh Agrawal said that the operationalization of the India-EFTA TEPA is a strong signal of collective wisdom and the will to strengthen free and fair trade. Goyal expressed gratitude to the leaders, negotiators, industry representatives, and officials from both India and the EFTA nations who contributed to the conclusion of the agreement. He described the TEPA as "an endless partnership" that marks only the beginning of a long and prosperous journey.