TEPA begins from October 2025
India-EFTA TEPA to Boost Investment and Trade from October 2025: The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially come into force on October 1, 2025. This was confirmed by the Commerce Minister recently.
The TEPA was signed in March 2024, marking a historic economic step. It is a Free Trade Agreement (FTA) focused on easing market access in goods and services, along with rules covering origin, trade remedies, and sanitary and phytosanitary measures.
Binding investment and employment targets
One of TEPA’s most distinctive features is its binding commitment. For the first time in an FTA, EFTA countries have pledged to invest $100 billion in Foreign Direct Investment (FDI) and generate 1 million direct jobs in India over the next 15 years.
In exchange, India will reduce or eliminate import duties on high-end European products like Swiss watches, chocolates, and cut and polished diamonds.
Market access provisions
Under the agreement, EFTA will offer 100% market access to non-agricultural products from India and tariff concessions on Processed Agricultural Products (PAP). Sensitive sectors such as dairy, soya, coal, and other agricultural goods have been excluded to protect India’s domestic interests.
India, on the other hand, will reduce or eliminate tariffs on 95.3% of EFTA exports, while EFTA will do so on 99.6% of Indian exports.
Trade facilitation and services
TEPA includes modern trade facilitation tools such as IPR protection and Mutual Recognition Agreements (MRAs) in professional services, including nursing. This will enable Indian professionals to access EFTA countries more easily.
India-EFTA trade dynamics
During 2024–25, trade between India and EFTA reached USD 24.4 billion. However, India faced a significant trade deficit, primarily due to gold imports from Switzerland.
Switzerland remains India’s largest EFTA trade partner, followed by Norway.
Static GK fact: Switzerland is known globally as the largest gold refining and trading hub, making it a major component of India’s trade imbalance with the region.
What is EFTA?
The European Free Trade Association (EFTA) is an inter-governmental organization focused on enhancing free trade and economic integration among its members.
Its member countries are Switzerland, Iceland, Norway, and Liechtenstein. EFTA was established in 1960 under the Stockholm Convention with seven founding members.
Static GK tip: EFTA is not part of the European Union (EU) and functions independently to promote trade liberalization.
Static Usthadian Current Affairs Table
India-EFTA TEPA to Boost Investment and Trade from October 2025:
| Topic | Detail |
| TEPA Full Form | Trade and Economic Partnership Agreement |
| Date of Effect | October 1, 2025 |
| FDI Commitment | $100 billion over 15 years |
| Jobs Commitment | 1 million direct jobs in India |
| EFTA Members | Switzerland, Iceland, Norway, Liechtenstein |
| Major Indian Import from EFTA | Gold from Switzerland |
| Indian Products with Duty Cuts | Swiss watches, chocolates, cut diamonds |
| India’s Export Tariff Access | 99.6% duty-free access to EFTA |
| EFTA’s Export Tariff Access | 95.3% duty-free access to India |
| Year EFTA was Founded | 1960 under the Stockholm Convention |
