India, EFTA Sign TEPA
The Trade and Economic Partnership Agreement (TEPA) signed between India and the European Free Trade Association (EFTA) in 2025 marks a historic milestone. EFTA includes Switzerland, Norway, Iceland, and Liechtenstein. This is India’s first comprehensive trade pact with a group of developed European economies. TEPA promises to enhance trade, investment, and strategic cooperation, aligning with India’s vision of becoming a global economic powerhouse.
Key Features of TEPA
TEPA commits to investment worth $100 billion over 15 years in India. It aims to create up to one million direct jobs. The agreement covers tariff elimination or reduction on 92.2% of tariff lines, representing 99.6% of India’s export value to EFTA. All non-agricultural products will receive duty-free treatment. This opens new avenues for Indian exporters in organic chemicals, textiles, gems, jewellery, and industrial products.
Market Access and Services Sector
India secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein. These cover IT professionals, business services, and skilled workforce sectors. TEPA strengthens India’s position as a global services hub. Consumers in both regions will benefit from competitive prices and greater product choices.
Strategic and Technological Collaboration
Beyond trade, TEPA enables advanced cooperation in precision engineering, pharmaceuticals, health sciences, renewable energy, and frontier technologies. EFTA’s expertise complements India’s needs. India’s skilled workforce can absorb, adapt, and innovate technologies for domestic and global markets. This partnership is critical for India’s long-term economic and technological growth.
India’s Renewable Energy Goals
India aims to install 500 GW of renewable energy capacity by 2030 and achieve Net Zero by 2070. TEPA opens doors for European green finance, technology partnerships, and sustainability-focused capital. India’s renewable capacity reached 243 GW in mid-2025, including solar, wind, and hydro. The agreement supports India’s clean energy transition and climate commitments.
Thorium and Nuclear Energy Cooperation
India holds nearly 25% of the world’s thorium reserves. Thorium offers clean, safe, and abundant nuclear fuel. TEPA may facilitate access to European funds for thorium pilot projects. Norway’s expertise in thorium fuel testing can accelerate India’s nuclear programme. Developing thorium energy will help provide stable baseload power and create export opportunities in nuclear technology.
Economic Diplomacy
TEPA reflects India’s assertive and strategic economic diplomacy. It balances immediate trade benefits with long-term technology and investment gains. The pact supports job creation, supply chain resilience, and climate action. India’s partnerships under TEPA set a benchmark for future global cooperation focused on domestic priorities and sustainable development.
| Related | |
|---|---|
