{"id":9179,"date":"2025-10-13T14:08:35","date_gmt":"2025-10-13T08:38:35","guid":{"rendered":"https:\/\/theeducationoverview.in\/?p=9179"},"modified":"2025-10-13T14:08:35","modified_gmt":"2025-10-13T08:38:35","slug":"india-efta-trade-pact-boosting-100-billion-investment-and-1-million-jobs","status":"publish","type":"post","link":"https:\/\/theeducationoverview.in\/?p=9179","title":{"rendered":"India-EFTA Trade Pact: Boosting $100 Billion Investment and 1 Million Jobs"},"content":{"rendered":"

India-EFTA Trade Pact: Boosting $100 Billion Investment and 1 Million Jobs<\/strong><\/span><\/h2>\n

Posted On: 11 OCT 2025 12:20PM by PIB Delhi<\/strong><\/span><\/p>\n\n\n\n
Key Takeaways<\/strong><\/span><\/p>\n

\u00b7\u00a0India and EFTA\u00a0signed the\u00a0Trade and Economic Partnership Agreement (TEPA)\u00a0on\u00a010 March 2024; it took effect on\u00a01 October 2025, marking India\u2019s first FTA with four developed European nations.<\/strong><\/span><\/p>\n

\u00b7\u00a0TEPA commits USD 100 billion in investments\u00a0and\u00a01 million direct jobs\u00a0over 15 years, the first binding pledge of its kind in any Indian FTA.<\/strong><\/span><\/p>\n

\u00b7\u00a0EFTA covers 92.2% of tariff lines\u00a0(99.6% of India\u2019s exports), while\u00a0India covers 82.7%\u00a0(95.3% of EFTA\u2019s exports), protecting key sectors like\u00a0dairy, soya, coal, and agriculture.<\/strong><\/span><\/p>\n

\u00b7 The pact expands\u00a0market access, drives\u00a0manufacturing and innovation, and strengthens cooperation in\u00a0technology and sustainability.<\/strong><\/span><\/p>\n

\u00b7\u00a0Services exports\u00a0gain through\u00a0digital delivery, commercial presence, professional mobility, and\u00a0Mutual Recognition Agreements (MRAs)\u00a0in fields such as\u00a0nursing, accountancy, and architecture.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

A Defining Moment in India\u2013Europe Economic Relations<\/strong><\/span><\/p>\n\n\n\n
WHAT IS EFTA?<\/strong><\/span><\/p>\n

EFTA is the intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland. It was set up in 1960 by its then 7 Member States for promotion of free trade and economic integration between its members. EFTA is 1 important economic block out of the 3 (other 2 – EU & UK) in Europe.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The\u00a0India\u2013European Free Trade Association (EFTA)\u00a0Trade and Economic Partnership Agreement (TEPA), signed on\u00a010 March 2024\u00a0in New Delhi, came into force on\u00a01 October 2025, marking a defining moment in India\u2019s external trade policy.<\/strong><\/span><\/p>\n

This is\u00a0India\u2019s first Free Trade Agreement with four developed European nations, Switzerland, Norway, Iceland, and Liechtenstein, and one of the most ambitious in scale and intent. It represents a strategic convergence between India\u2019s Atmanirbhar Bharat vision and EFTA\u2019s search for resilient, diversified partnerships.<\/strong><\/span><\/p>\n

The agreement consists of 14 chapters, focusing on key areas such as market access for goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, services, intellectual property rights, trade and sustainable development, and other legal and horizontal provisions.<\/strong><\/span><\/p>\n

At its core, the agreement envisions unlocking\u00a0$100 billion in investments\u00a0and\u00a0creating one million direct jobs in India\u00a0over the next fifteen years, marking it as one of the most forward-looking trade partnerships in the country\u2019s economic history.<\/strong><\/span><\/p>\n

\n\n\n\n
WHAT IS TEPA?<\/strong><\/span><\/p>\n

TEPA (Trade and Economic Partnership Agreement)\u00a0is a modern and ambitious agreement which, for the first time in any Free Trade Agreement (FTA) signed by India, includes binding commitments on investment and job creation.<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Key Features of TEPA<\/strong><\/span><\/p>\n

Investment with Purpose<\/strong><\/span><\/p>\n

Under Article 7.1, the four EFTA states have pledged to increase\u00a0foreign direct investment (FDI) in India by $50 billion within the first 10 years, followed by an\u00a0additional $50 billion in the next five years.<\/strong><\/span><\/p>\n

Unlike portfolio inflows, these are long-term, capacity-building investments focused on manufacturing, innovation, and research. Over time, they are expected to generate one million direct jobs and forge deeper linkages between India\u2019s skilled workforce and Europe\u2019s technology ecosystems.<\/strong><\/span><\/p>\n

To streamline investment facilitation, a\u00a0dedicated India\u2013EFTA Desk, operational since February 2025, serves as a single-window platform for potential investors, focusing on renewable energy, life sciences, engineering, and digital transformation, while promoting joint ventures and SME collaborations.\u00a0<\/strong><\/span><\/p>\n

Balanced Market Access<\/strong><\/span><\/p>\n

TEPA strikes a balance between ambition and prudence. EFTA has offered tariff concessions on 92.2% of tariff lines, covering 99.6% of India\u2019s exports, including all non-agricultural goods and processed agricultural products.<\/strong><\/span><\/p>\n

India, in turn, has extended access on 82.7% of tariff lines, accounting for 95.3% of EFTA exports, but with strong safeguards. Over 80% of imports from EFTA comprise gold, where no change in effective duty has been made.<\/strong><\/span><\/p>\n

Sensitive sectors such as dairy, soya, coal, pharmaceuticals, medical devices, and select food products have been kept in the exclusion list. For products under flagship programmes like Make in India and the Production Linked Incentive (PLI) Scheme, tariff reductions are phased over 5\u201310 years, giving domestic industries time to strengthen before full competition opens.<\/strong><\/span><\/p>\n

A Gateway for Services and Skilled Talent<\/strong><\/span><\/p>\n

With services contributing over 55% to\u00a0India\u2019s Gross Value Added\u00a0(GVA), TEPA offers a platform for next-generation trade in knowledge and digital services.<\/strong><\/span><\/p>\n

India has made commitments in 105 sub-sectors, while EFTA\u2019s offers cover\u00a0128 from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein. This includes key Indian strengths such as IT and business services, education, media, cultural, and professional services.<\/strong><\/span><\/p>\n

A defining element of TEPA is the inclusion of\u00a0Mutual Recognition Agreements (MRAs)\u00a0in professions like\u00a0nursing, chartered accountancy, and architecture, a step towards smoother professional mobility.<\/strong><\/span><\/p>\n

TEPA is also expected to\u00a0boost India\u2019s services exports\u00a0in core areas such as\u00a0IT and business services, cultural and recreational services, education, and audio-visual services.<\/strong><\/span><\/p>\n

EFTA\u2019s services commitments provide\u00a0enhanced market access\u00a0through:<\/strong><\/span><\/p>\n

Mode 1:\u00a0Digital delivery of services<\/strong><\/span><\/p>\n

Mode 3:\u00a0Commercial presence<\/strong><\/span><\/p>\n

Mode 4:\u00a0Greater certainty for entry and temporary stay of skilled professionals<\/strong><\/span><\/p>\n

IPR, Innovation and Trust<\/strong><\/span><\/p>\n

TEPA\u2019s Intellectual Property Rights (IPR) provisions reaffirm commitments under TRIPS, ensuring a\u00a0high level of protection while preserving India\u2019s flexibility on public health and generics.<\/strong><\/span><\/p>\n

For Switzerland, a global innovation hub, the IPR chapter reflects confidence in India\u2019s regulatory strength, while India\u2019s safeguards against patent evergreening protect affordable access to medicines. The balance makes TEPA a model of trust-driven cooperation between innovation and inclusion.<\/strong><\/span><\/p>\n

Sustainable and Inclusive Development<\/strong><\/span><\/p>\n

TEPA emphasizes sustainable development, inclusive growth, social progress, and environmental protection. It will foster transparency, efficiency, simplification, harmonization, and consistency in trade procedures.<\/strong><\/span><\/p>\n

Sectoral Opportunities: Where Gains Will Emerge<\/strong><\/span><\/p>\n

The India\u2013EFTA Trade and Economic Partnership Agreement (TEPA) unlocks opportunities across a wide range of industries. With EFTA\u2019s offer covering 92% of tariff lines, Indian\u00a0exporters in sectors such as machinery, organic chemicals, textiles and processed foods will gain significantly\u00a0improved access to EFTA markets. This is expected to enhance competitiveness, lower compliance costs and accelerate market entry for Indian products.<\/strong><\/span><\/p>\n

Agriculture and Allied Goods<\/strong><\/span><\/p>\n

India\u2019s exports to EFTA, valued at $72.37 million in FY 2024\u201325, are dominated by guar gum, processed vegetables, basmati rice, pulses, fruits, and grapes.<\/strong><\/span><\/p>\n

TEPA reduces or eliminates tariffs across these categories, particularly in Switzerland and Norway, which together account for over 99% of India\u2019s agri-trade with EFTA.<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
COUNTRY-SPECIFIC GAINS<\/strong><\/span><\/td>\n<\/tr>\n
EFTA Nations<\/strong><\/span><\/td>\nProducts \/ HS Codes<\/strong><\/span><\/td>\nTariff Concessions \/ Opportunities<\/strong><\/span><\/td>\n<\/tr>\n
Switzerland<\/strong><\/span><\/td>\nFood Preparations<\/strong><\/span><\/td>\nTariffs up to 127.5 CHF\/100 kg eliminated; scope for Indian exports<\/strong><\/span><\/td>\n<\/tr>\n
Confectionery, Biscuits<\/strong><\/span><\/td>\nDuty cuts create opportunities in processed foods<\/strong><\/span><\/td>\n<\/tr>\n
Fresh Grapes<\/strong><\/span><\/td>\nTariffs up to 272 CHF\/100 kg eliminated<\/strong><\/span><\/td>\n<\/tr>\n
Nuts & Seeds, Fresh Vegetables<\/strong><\/span><\/td>\nZero tariffs post FTA, boosting competitiveness<\/strong><\/span><\/td>\n<\/tr>\n
Norway<\/strong><\/span><\/td>\nFood Preparations, Condiments<\/strong><\/span><\/td>\nDuty-free access on several tariff lines<\/strong><\/span><\/td>\n<\/tr>\n
Rice<\/strong><\/span><\/td>\nTariff reductions (non-feed purposes) open new markets<\/strong><\/span><\/td>\n<\/tr>\n
Processed Vegetables & Fruits<\/strong><\/span><\/td>\nDuty-free access on selected lines<\/strong><\/span><\/td>\n<\/tr>\n
Biscuits, Malt Extracts, Beverages<\/strong><\/span><\/td>\nTariff relief improves access for Indian brands<\/strong><\/span><\/td>\n<\/tr>\n
Iceland<\/strong><\/span><\/td>\nProcessed Foods<\/strong><\/span><\/td>\nHigh MFN tariffs (up to 97 ISK\/kg) cut to zero<\/strong><\/span><\/td>\n<\/tr>\n
Chocolate & Confectionery<\/strong><\/span><\/td>\nDuties eliminated; strong potential for processed food exports<\/strong><\/span><\/td>\n<\/tr>\n
Fresh\/Chilled Vegetables<\/strong><\/span><\/td>\nTariff elimination<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

Coffee and Tea<\/strong><\/span><\/p>\n

EFTA countries together import $175 million worth of coffee, nearly\u00a03% of global trade.<\/strong><\/span><\/p>\n

With\u00a0zero duty on all coffee lines, TEPA enables Indian producers to access premium markets in Switzerland and Norway, ideal destinations for shade-grown and handpicked Indian coffee.<\/strong><\/span><\/p>\n

For tea, EFTA\u2019s small but high-value market (~3 million kg annually) has already reflected benefits, India\u2019s average export realisation rose to $6.77\/kg in 2024\u201325, up from $5.93\/kg the previous year.<\/strong><\/span><\/p>\n

\n

Marine Products<\/strong><\/span><\/p>\n

Under TEPA, Indian marine products will benefit from significant tariff concessions across EFTA countries:<\/strong><\/span><\/p>\n\n\n\n\n\n\n
COUNTRY-WISE MARKET BENEFITS<\/strong><\/span><\/td>\n<\/tr>\n
 <\/p>\n

Norway<\/strong><\/span><\/td>\n

Exemption of duty of up to 13.16% on fish and shrimp feed, making Indian products more competitive and enhancing exports of feed and raw materials.<\/strong><\/span><\/td>\n<\/tr>\n
 <\/p>\n

Iceland<\/strong><\/span><\/td>\n

Tariff elimination of up to 10% on frozen, prepared and preserved shrimps, prawns, squid and cuttlefish, along with reductions of up to 55% on fish feed.<\/strong><\/span><\/td>\n<\/tr>\n
Switzerland<\/strong><\/span><\/td>\nZero duty on fats and oils of fish (excluding liver oil).<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

Industrial and Manufacturing Gains<\/strong><\/span><\/p>\n

Engineering goods exports to EFTA stood at $315 million\u00a0in FY 2024\u201325, up 18% year-on-year. The agreement expands market access for electric machinery, copper products, energy-efficient systems, and precision engineering.<\/strong><\/span><\/p>\n

Textiles and apparel, valued at $0.13 billion, and leather and footwear will benefit from duty stability and simplification of standards, while sports goods and toys gain from zero-duty access and mutual recognition of conformity standards.<\/strong><\/span><\/p>\n

For gems and jewellery, TEPA consolidates duty-free access across EFTA, ensuring long-term predictability for exporters in diamonds, gold, and coloured gemstones.<\/strong><\/span><\/p>\n

Electronics and Software<\/strong><\/span><\/p>\n

With a\u00a0USD 100 billion investment commitment\u00a0and preferential access to high-income European markets, TEPA provides a strategic springboard for India\u2019s electronics sector \u2014 particularly for MSMEs and OEMs looking to scale globally.<\/strong><\/span><\/p>\n\n\n\n\n\n\n\n
COUNTRY-WISE MARKET POTENTIAL<\/strong><\/span><\/td>\n<\/tr>\n
 <\/p>\n

 <\/p>\n

 <\/p>\n

Switzerland<\/strong><\/span><\/p>\n

 <\/td>\n

Medical electronics (diagnostic devices, wearables), smart sensors and embedded systems, secure communication modules (for fintech and banking).<\/strong><\/span><\/p>\n

 <\/p>\n

Strategic edge:\u00a0Leverage TEPA\u2019s IPR chapter to protect proprietary technology.<\/strong><\/span><\/p>\n

 <\/td>\n<\/tr>\n

 <\/p>\n

 <\/p>\n

Norway<\/strong><\/span><\/td>\n

EV components and battery management systems, marine electronics (navigation, sonar, IoT buoys), smart grid and energy monitoring devices.<\/strong><\/span><\/p>\n

 <\/p>\n

Strategic edge:\u00a0Align with Norway\u2019s climate-tech goals and public procurement channels.<\/strong><\/span><\/td>\n<\/tr>\n

 <\/p>\n

 <\/p>\n

Iceland<\/strong><\/span><\/p>\n

 <\/td>\n

Compact medical devices and diagnostics, smart home and energy-efficient electronics, educational tech hardware (tablets, sensors).<\/strong><\/span><\/p>\n

 <\/p>\n

Strategic edge:\u00a0Target niche distributors and public health initiatives<\/strong><\/span><\/td>\n<\/tr>\n

 <\/p>\n

 <\/p>\n

Liechtenstein<\/strong><\/span><\/p>\n

 <\/td>\n

Industrial control systems, secure embedded electronics for banking, high-precision components for OEMs.<\/strong><\/span><\/p>\n

 <\/p>\n

Strategic edge:\u00a0Position India as a reliable EMS partner for European OEMs.<\/strong><\/span><\/p>\n

 <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

Chemicals, Plastics and Allied Products<\/strong><\/span><\/p>\n

EFTA has granted\u00a0zero or reduced tariffs on 95% of India\u2019s chemical exports, cutting pre-FTA duties of up to 54%.<\/strong><\/span><\/p>\n

Exports are projected to grow from $49 million to $65\u201370 million, particularly in pet food, rubber, ceramics, and glassware.<\/strong><\/span><\/p>\n

For plastics and shellac-based products, TEPA enables diversification into high-value European markets, reducing reliance on tariff-heavy destinations like the U.S.<\/strong><\/span><\/p>\n

A Partnership Rooted in Mutual Confidence<\/strong><\/span><\/p>\n

For India,\u00a0TEPA is more than a trade pact, it is an instrument of strategic trust with like-minded economies that value transparency, rule-based trade, and innovation.<\/strong><\/span><\/p>\n

It also\u00a0demonstrates a mature approach to trade liberalisation, one that\u00a0protects domestic interests\u00a0while projecting\u00a0India\u00a0as\u00a0a reliable partner in global supply chains.<\/strong><\/span><\/p>\n

By opening doors to\u00a0investment, employment, technology and sustainability, TEPA captures the essence of a modern\u00a0economic partnership, ambitious, balanced, and forward-looking.<\/strong><\/span><\/p>\n

Conclusion<\/strong><\/span><\/p>\n

The India\u2013EFTA Trade and Economic Partnership Agreement (TEPA) represents a historic milestone, establishing\u00a0India\u2019s first FTA with four developed European nations. It brings with it\u00a0commitments of USD 100 billion\u00a0in investments and the creation of\u00a01 million direct jobs\u00a0over the next 15 years. The agreement enhances market access for goods and services, strengthens intellectual property rights, and promotes sustainable and inclusive development, while advancing the objectives of Make in India and Atmanirbhar Bharat.<\/strong><\/span><\/p>\n

\nReferences<\/strong><\/span><\/p>\n

Ministry of Commerce and Industry<\/strong><\/span><\/p>\n

https:\/\/www.commerce.gov.in\/international-trade\/trade-agreements\/india-efta-tepa\/<\/a><\/strong><\/span><\/p>\n

https:\/\/www.pib.gov.in\/PressReleaseIframePage.aspx?PRID=2013169<\/a><\/strong><\/span><\/p>\n

PIB<\/strong><\/span><\/p>\n

https:\/\/www.pib.gov.in\/PressNoteDetails.aspx?NoteId=154945&ModuleId=3<\/a><\/strong><\/span><\/p>\n

https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=2173138<\/a><\/strong><\/span><\/p>\n

Click here to see pdf\u00a0<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

India-EFTA Trade Pact: Boosting $100 Billion Investment and 1 Million Jobs Posted On: 11 OCT 2025 12:20PM by PIB Delhi Key Takeaways \u00b7\u00a0India and EFTA\u00a0signed the\u00a0Trade and Economic Partnership Agreement (TEPA)\u00a0on\u00a010 March 2024; it took effect on\u00a01 October 2025, marking India\u2019s first FTA with four developed European nations. \u00b7\u00a0TEPA commits USD 100 billion in investments\u00a0and\u00a01 …<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9179","post","type-post","status-publish","format-standard","hentry","category-education-news"],"_links":{"self":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/9179","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9179"}],"version-history":[{"count":1,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/9179\/revisions"}],"predecessor-version":[{"id":9181,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=\/wp\/v2\/posts\/9179\/revisions\/9181"}],"wp:attachment":[{"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9179"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9179"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/theeducationoverview.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9179"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}