India-EFTA TEPA Comes into Effect

On 1st October 2025, the landmark India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially came into force.

Signed on March 10, 2024, in New Delhi, TEPA is being hailed as India’s most ambitious free trade deal, combining market access with binding commitments on investment and job creation.

Key Points

Historic First: For the first time in any Indian FTA, TEPA includes a binding commitment of $100 billion in foreign direct investment over 15 years, creating 1 million direct jobs.
Investment Focus: Investments exclude foreign portfolio flows, prioritizing long-term capital for technology transfer, capacity building, and innovation.
Goods Market Access: EFTA offers duty concessions on 92.2% of tariff lines, covering nearly all Indian exports (textiles, marine products, chemicals, machinery, gems & jewellery). India opens 82.7% of tariff lines, though sensitive sectors like dairy, coal, and medical devices are protected.
Gold Exception: Gold imports, which form over 80% of EFTA’s exports to India, remain unaffected by tariff cuts.
Services Liberalization: India secures improved access across 128 sub-sectors from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein, including IT, business services, education, and cultural sectors.
Professional Mobility: Pathways for Mutual Recognition Agreements (MRAs) in professions like nursing, chartered accountancy, and architecture expand opportunities for Indian professionals.
Export Boost: Concessions on basmati rice, guar gum, fruits, mangoes, nuts, coffee, tea, and marine products (tariff elimination up to 55%) are expected to significantly enhance India’s competitiveness.