India-EFTA Trade and Economic Partnership Agreement 2025
India and the European Free Trade Association (EFTA) will implement the Trade and Economic Partnership Agreement (TEPA) from 1 October 2025. Signed in March 2024, this comprehensive agreement aims to deepen trade, investment, and cooperation between India and the four EFTA countries – Switzerland, Norway, Iceland, and Liechtenstein. TEPA is India’s first FTA with these developed European nations and includes unique commitments on investment and job creation.
Overview of TEPA
TEPA covers 14 chapters addressing goods, services, investment, intellectual property rights, and sustainable development. It offers extensive market access, with EFTA removing tariffs on 100% of non-agricultural products and processed agricultural goods. India has opened 82.7% of its tariff lines to EFTA, protecting sensitive sectors like pharmaceuticals, medical devices, dairy, and coal. The agreement also promotes trade facilitation, rules of origin, sanitary measures, and technical barriers to trade.
Investment and Employment Commitments
EFTA commits to increasing foreign direct investment (FDI) into India by USD 100 billion over 15 years. This investment focuses on long-term productive capital, excluding portfolio investments. The agreement aims to generate 1 million direct jobs in India through these investments. The India-EFTA Desk, established in 2025, acts as a single-window for facilitating investment and business expansion, especially in renewable energy, life sciences, engineering, and digital sectors.
Market Access for Goods
EFTA offers tariff concessions covering 92.2% of tariff lines, accounting for 99.6% of India’s exports to the bloc. Key Indian export sectors benefiting include machinery, textiles, processed foods, chemicals, marine products, coffee, tea, and engineering goods. Sensitive Indian sectors remain protected with phased tariff reductions. Indian exporters gain improved access to high-value markets in Switzerland and Norway.
Services and Professional Mobility
TEPA enhances market access in over 100 service sub-sectors. It includes Mutual Recognition Agreements (MRAs) for professions like nursing, chartered accountancy, and architecture. The agreement strengthens India’s position in IT, business services, education, and cultural sectors. It facilitates digital service delivery, commercial presence, and temporary stay of skilled personnel.
Intellectual Property Rights (IPR)
The IPR chapter aligns with WTO TRIPS standards, ensuring robust protection of intellectual property. India’s concerns over generic medicines and patent evergreening have been addressed. This encourages innovation while safeguarding public health interests.
Sustainable and Inclusive Development
TEPA promotes sustainable growth, environmental protection, and social progress. It encourages transparency, efficiency, and harmonisation of trade procedures. The agreement supports vocational training and technology collaboration to boost India’s young workforce.
Sectoral Opportunities
Agriculture exports like guar gum, basmati rice, and processed foods will benefit from tariff elimination. Marine products, textiles, leather, sports goods, and toys gain from zero or reduced duties and simplified standards. Engineering goods and electronics sectors stand to expand through improved market access and investment inflows. Gems and jewellery maintain duty-free access. Chemical and allied products will see tariff removals and streamlined compliance.
Strategic Safeguards
India has protected sensitive sectors critical for domestic capacity building and strategic interests. Tariff reductions on these products will be gradual, aligning with Make in India and Production Linked Incentive (PLI) scheme.
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