India’s Free Trade Agreement with the European Free Trade Association (EFTA) will officially come into effect on October 1, 2025. The announcement was made by Commerce and Industry Minister Piyush Goyal on July 19. The agreement, called the Trade and Economic Partnership Agreement (TEPA), was signed on March 10, 2024, after nearly sixteen years of negotiations. The four EFTA member nations—Switzerland, Norway, Iceland, and Liechtenstein—have now completed the ratification process.
Under this agreement, EFTA countries have committed to investing 100 billion US dollars in India over the next fifteen years. This investment is expected to generate nearly one million direct jobs across various sectors of the Indian economy. The commitment includes fifty billion dollars in the first ten years, followed by an additional fifty billion dollars in the next five years.
From October 1, India will reduce or eliminate import duties on a wide range of products from EFTA nations. These include high-end goods such as Swiss watches, chocolates, biscuits, clocks, and cut and polished diamonds. The agreement covers 82.7 percent of India’s tariff lines, providing preferential access to 95.3 percent of EFTA’s exports. In return, EFTA countries will offer tariff concessions on 92.2 percent of their tariff lines for Indian products.
In addition to goods, the agreement also opens up opportunities in the services sector. India will grant access in 105 services sub-sectors, while Switzerland, Norway, Liechtenstein, and Iceland have reciprocated with expanded access in their respective markets. The agreement includes chapters on investment, trade facilitation, intellectual property rights, and sustainable development, ensuring a comprehensive and balanced approach.
The TEPA is expected to boost India’s exports, attract long-term foreign direct investment, and enhance India’s integration with global markets. It supports the Make in India initiative and aligns with international trade standards, offering a strategic entry point for Indian companies into the European Union market through Switzerland.
With its focus on investment, job creation, and trade expansion, the India-EFTA agreement marks a major milestone in India’s international economic partnerships and trade diplomacy.
(with agency inputs)
