India-EFTA Trade Pact Commits $100 Billion Investment and Generates 10 Lakh Jobs

The India-EFTA Trade and Economic Partnership Agreement (TEPA), effective from October 1, 2025, marks India’s first comprehensive FTA with developed European nations. The deal aims to bring $100 billion in FDI and generate 10,00,000 direct jobs over the next 15 years, enhancing India's role in global trade.

Massive Investment and Employment Generation

TEPA stands out as India's first FTA with binding commitments, promising $50 billion FDI within 10 years and an additional $50 billion in the following 5 years. These long-term investments are focused on manufacturing, R&D, and innovation, supporting the Atmanirbhar Bharat vision. Over time, this is projected to create 10,00,000 direct jobs across high-impact sectors.

Enhanced Market Access with Tariff Benefits

Under TEPA, EFTA covers 92.2% of tariff lines, giving 99.6% of Indian exports duty-free access, while India covers 82.7%, equivalent to 95.3% of EFTA exports. Sensitive sectors like dairy, coal, and soya remain protected. Products under Make in India and PLI schemes enjoy phased tariff reductions over up to 10 years.

Unleashing India’s Export Potential

Engineering goods exports to EFTA surged 18% to $315 million in FY 2024-25. TEPA boosts Indian exports in electronics, gems and jewellery, textiles, leather, and processed foods. FMCG items like confectionery, biscuits, and rice gain duty-free access, especially in Switzerland and Norway.

Read More: Govt Unveils Major Changes to Textile PLI Scheme to Boost Investments!

New Era for Services, Professionals, and IP Rights

TEPA opens up services through digital delivery, commercial presence, and professional mobility via 105 sub-sector commitments. MRAs in nursing, architecture, and accountancy ease movement for Indian professionals. Strong IP protections balance innovation and affordable access, especially in pharma, aligning with global TRIPS standards.

Sectoral and Country-wise Growth Pathways

Indian MSMEs and OEMs benefit from zero-duty exports in electronics, marine, processed foods, and chemicals, targeting Switzerland, Norway, Iceland, and Liechtenstein. Coffee, tea, and pet food enter premium European markets, while India gains from public procurement channels and climate-tech alignment with these nations.

Conclusion

TEPA is a landmark economic pact delivering on strategic investment, employment, and trade opportunities. It embodies mutual trust and long-term partnership between India and developed European economies, boosting India’s global economic standing.

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