The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) officially came into effect on October 1, 2025, marking a new chapter in economic cooperation. This landmark agreement, signed on March 10, 2024, in New Delhi, signals a strong commitment to strengthening trade relations, boosting investment, and creating new opportunities for growth between India and the EFTA states, which include Iceland, Liechtenstein, Norway, and Switzerland.

The India-EFTA TEPA is a comprehensive and ambitious agreement that addresses various aspects of economic partnership. It focuses on market access for goods, trade facilitation, investment promotion, access to services markets, intellectual property rights, and sustainable development.

Key Benefits and Provisions:

• Increased Trade and Economic Integration: The agreement aims to substantially increase two-way trade by enhancing market access and streamlining customs procedures, making it easier for businesses in India and the EFTA states to expand their operations.
• Investment and Job Creation: A key highlight of the TEPA is the commitment from EFTA countries to invest $100 billion USD in India over the next 15 years. This investment is projected to create one million direct jobs in India, fostering economic growth and development.
• Duty-Free Access: EFTA's market access covers 100% of non-agricultural products and offers tariff concessions on processed agricultural products. Indian exporters, particularly in sectors like textiles, engineering goods, gems and jewellery, and processed food products, will gain significantly improved access to EFTA markets. The gems and jewellery sector, in particular, stands to benefit from sustained duty-free access to key European markets.
• Facilitating Investment: To support EFTA businesses in investing and expanding their operations in India, a dedicated EFTA Desk has been operational since February 2025. This single-window mechanism provides facilitation and serves as a primary channel for business-government interaction.
• Intellectual Property Rights: The agreement ensures intellectual property rights commitments are maintained at the TRIPS (Trade-Related Aspects of Intellectual Property Rights) level. It also safeguards India's interests in generic medicines and addresses concerns related to the evergreening of patents.
• Resilient Supply Chains: The TEPA is expected to lead to more resilient and better-integrated supply chains between India and the EFTA states. By building strong links as trusted partners the agreement aligns with the trajectory of the parties involved.
• Growth and Innovation: The agreement aims to foster an environment for innovation, expansion, and prosperity for both Indian and EFTA businesses. Easier access to advanced equipment, inputs, and capital from Europe is expected to strengthen India's value chains and improve the competitiveness of its exports.

Impact and Expectations:

The India-EFTA TEPA is expected to have a far-reaching impact on trade, investment, and economic growth for both India and the EFTA states. By reducing trade barriers, promoting investment, and fostering innovation, the agreement is set to unlock new opportunities for businesses and create jobs for people. The agreement also reflects a commitment to sustainable development, ensuring that economic growth is balanced with environmental protection and social responsibility. The long-term benefits include deeper integration of supply chains, increased trade and investment flows, new job opportunities, and sustained economic growth. Through the Trade and Economic Partnership Agreement, India and the EFTA states are building bridges and encouraging trade and investment for balanced and sustainable outcomes.