India-EFTA Trade Agreement: $100 Billion Investment and One Million Jobs Through Historic European Partnership

New Delhi has witnessed a transformative development in its international trade relations as the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially became operational on October 1, 2025, following its signing on March 10, 2024.

According to official government statements, this landmark agreement represents India's first Free Trade Agreement with four economically advanced European nations: Switzerland, Norway, Iceland, and Liechtenstein. The deal is projected to generate $100 billion in investments and establish one million direct employment opportunities over a 15-year timeframe.

The EFTA member countries have committed to facilitating $50 billion in investments during the initial decade, with an additional $50 billion planned for the subsequent five years. These financial commitments will primarily target strategic sectors including renewable energy, life sciences, digital transformation, and engineering. To streamline investment processes, authorities have established a dedicated India-EFTA Desk functioning as a single-window platform for potential investors.

The agreement provides mutually beneficial market access arrangements. EFTA nations have extended tariff concessions on 92.2 percent of tariff lines, encompassing 99.6 percent of India's export volume. Correspondingly, India has granted access to 82.7 percent of tariff lines, covering 95.3 percent of EFTA exports, while maintaining protections for sensitive domestic sectors such as dairy, soya, coal, and selected agricultural products.

In the services sector, where India maintains strong global competitiveness, the agreement expands access across 105 sub-sectors. The deal incorporates Mutual Recognition Agreements in critical professional fields including nursing, accountancy, and architecture, facilitating enhanced mobility for skilled professionals between India and EFTA member states.

The intellectual property provisions within the agreement reaffirm both parties' dedication to innovation while preserving India's flexibility to safeguard affordable medicine access. Government sources note that this balanced approach strengthens cooperation between "India's skilled workforce and Europe's technology ecosystems."

Agriculture, marine products, and manufacturing sectors are anticipated to experience substantial growth under the new trade framework. Indian exports including coffee, tea, machinery, and processed foods are expected to increase as EFTA countries eliminate or reduce tariffs on these products. Additionally, engineering, textiles, electronics, and chemical industries will benefit from improved market access and streamlined trade procedures.

Official communications emphasize that TEPA transcends a conventional trade agreement to establish a partnership founded on confidence and mutual development. By integrating India's expanding industrial capabilities with EFTA's technological expertise, the agreement aims to inaugurate a new era of collaboration focused on sustainability, innovation, and employment generation.

Government sources highlight that this agreement marks the first instance where any Free Trade Agreement signed by India incorporates binding commitments specifically addressing investment targets and job creation objectives.