The free trade agreement (FTA) between India and the European Free Trade Association (EFTA) is expected to be implemented in the next couple of months, with Commerce and Industry Minister Piyush Goyal indicating a likely commencement by September.

The Trade and Economic Partnership Agreement (TEPA) between India and the four EFTA nations—Iceland, Liechtenstein, Norway, and Switzerland—was signed on March 10, 2024. This agreement is a significant milestone that aims to enhance trade and investment between the involved parties.

Under the terms of the TEPA, India is set to receive an investment commitment of USD 100 billion from the EFTA bloc over the next 15 years. This investment is planned to be distributed in two phases: USD 50 billion within the first 10 years of the agreement's implementation, followed by an additional USD 50 billion in the subsequent five years. This influx of capital is projected to create one million direct jobs in India, marking a first-of-its-kind commitment in India's trade agreement history.

The agreement also involves the reduction or elimination of import duties on various European goods, including popular items like Swiss watches, chocolates, and cut and polished diamonds. This is expected to benefit Indian consumers and industries by providing access to premium products at more competitive prices. Specifically, customs duties on items such as watches, chocolates, biscuits, and clocks will be gradually eliminated over a ten-year period.

Piyush Goyal has emphasized the importance of this agreement, expressing confidence that the TEPA will enhance trade relations between India and the EFTA countries. During a recent visit to Switzerland, he engaged with business leaders and representatives to promote trade and investments, noting the excitement and interest from Swiss firms in sectors like pharmaceuticals and cybersecurity.

The agreement has already secured approval from the parliaments of all four EFTA countries. As of June 2025, the final step involves the closing of an objection window in Switzerland, which is scheduled for July 10. Minister Goyal has noted the overwhelming support for the TEPA within Swiss political circles, viewing it as a positive sign for the future.

To safeguard India's interests, the agreement includes a mechanism that allows India to suspend duty concessions if the promised investments do not materialize. This ensures that the EFTA countries remain committed to fulfilling their investment pledges.

The India-EFTA TEPA is a comprehensive agreement designed to foster economic growth and create new opportunities for both India and the EFTA countries. By reducing trade barriers, promoting investment, and creating jobs, the agreement is expected to strengthen the economic partnership between the two regions.