India-EFTA Trade Deal to Launch October 1 After Long Delay

India will formally roll out its first-ever trade agreement with a European bloc on 1 October 2025, ending an 18-month wait since the deal was signed. The launch event is being staged at Bharat Mandapam in New Delhi, with Commerce and Industry Minister Piyush Goyal, senior EFTA ministers, government representatives, and industry leaders in attendance.

Scope of the Trade Deal

The pact, officially known as the Trade and Economic Partnership Agreement (TEPA), links India with the four-nation European Free Trade Association (EFTA) comprising Iceland, Switzerland, Norway, and Liechtenstein. 

Under the agreement, India will eliminate tariffs on 80–85% of imports from the bloc, while receiving duty-free access on 99% of its exports. Sensitive items such as agriculture and dairy have been left out of concessions to safeguard Indian farmers.

Investment Commitments and Job Creation

Unlike earlier trade arrangements, TEPA links market access with firm investment pledges. The EFTA group has committed $50 billion in investment over the first 10 years of the deal’s enforcement and an additional $50 billion over the following 5 years. 

These inflows are projected to help generate 1 million direct jobs in India over a 15-year horizon, making the agreement as much about capital inflows as tariff cuts.

Trade Relations and Balance

Among EFTA states, Switzerland dominates India’s trade basket. In FY25, India exported goods worth $1.97 billion to the bloc, with 3-quarters directed to Switzerland, representing a 1.2% annual increase. 

Imports were far larger at $22.44 billion, up 1.7% YoY, with Switzerland alone accounting for $21.8 billion or 97% of the total. This left India with a sizeable trade deficit of $120.47 billion against the bloc.

Read More: India Sees $2.3 Billion Outflows as GEM Funds Cut Allocation to 16.7%, China Rises to 28.8%!

Conclusion

Signed on 10 March 2024, the trade pact faced procedural delays in EFTA capitals before its enforcement. With its official launch now imminent, the agreement offers India unprecedented access to European markets, backed by significant investment commitments. 

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