India-EFTA Trade Agreement to Begin from October 1, 2025

India’s free trade agreement with the European Free Trade Association (EFTA) will come into effect on October 1, 2025, as per news reports. The EFTA group consists of Iceland, Liechtenstein, Norway, and Switzerland. The 2 sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

Investment Commitment

The pact includes an investment pledge of $100 billion over 15 years by EFTA members. Of this, $50 billion will be invested within the first 10 years, and another $50 billion in the following 5 years. The investment is linked with the creation of about one million direct jobs in India. This is the first time India has secured such a binding investment commitment in a trade agreement.

Trade Market Access

As per news reports, India will lower or eliminate tariffs on several imports from EFTA countries. These include Swiss watches, chocolates, and cut and polished diamonds. Switzerland stated that the agreement provides improved access for 94.7% of its current exports to India (2018-2023, excluding gold). Key sectors covered are pharmaceuticals, machinery, optical instruments, watches, and processed agricultural products.

Read more: India and Zambia Ink Trade Cooperation Pact to Boost Exports!

Legal Framework

The agreement contains binding provisions on trade and sustainable development, a first for India in an FTA. It also confirms the parties’ rights and obligations under other international treaties relating to trade, environment, social affairs, and human rights. The provisions are for ensuring that environmental and labour standards are not compromised under the agreement.

Conclusion

The India-EFTA pact will be operational from October 1, 2025, bringing investment commitments, duty reductions, and updated legal provisions into force.

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