The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will come into force on October 1, 2025. EFTA includes Switzerland, Norway, Iceland, and Liechtenstein. The agreement was signed on March 10, 2024, after nearly 16 years of negotiations.
Under the pact, EFTA has pledged $100 billion in foreign direct investment(FDI) into India over the next 15 years. The investment is split into $50 billion within the first 10 years and another $50 billion over the following 5. The deal includes a job creation target of 1 million direct jobs in India.
EFTA will eliminate tariffs on 99.6% of Indian exports, while India will reduce tariffs on 95.3% of goods from EFTA countries. However, the 15% duty on gold, EFTA’s primary export, remains unchanged. India has kept primary agricultural products out of the agreement’s scope.
The agreement includes mutual recognition provisions for professional services. Sectors such as nursing, architecture, and chartered accountancy will see expanded access for Indian professionals in EFTA countries. A Dedicated India-EFTA Desk has been launched to support implementation and business coordination.
India has offered 82.7% of its tariff lines, covering 95.3% of EFTA exports. In return, Indian businesses will gain better access to European markets. The pact also includes provisions on processed agricultural products, excluding primary farm goods.
Both parties have agreed to follow TRIPS standards on intellectual property. India’s positions on generic drugs and concerns around patent evergreening have been included in the final agreement text.
Read More: India and UK Expected to Sign the Trade Agreement Next Week!
The India-EFTA agreement will be operational from October 1, 2025. It aims to increase trade, investment, and employment through a phased rollout of tariff reductions and regulatory cooperation.
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Published on: Jul 21, 2025, 2:05 PM IST
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