India's Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland and Liechtenstein — entered into force on October 1, 2025. The agreement combines deep tariff concessions with a binding $100 billion investment commitment over 15 years. It is India's first FTA with developed European economies and is expected to boost pharmaceutical, chemical, and financial services sectors. By October 5, initial implementation was underway, including customs duty reductions.
India-EFTA TEPA Enters into Force: ₹100 Billion Investment Commitment Activated
AQuick answer
India's Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland and Liechtenstein — entered into force on October 1, 2025. The agreement combines deep tariff concessions with a binding $100 billion investment commitment over 15 years. It is India's first FTA with developed European economies and is expected to boost pharmaceutical, chemical, and financial services sectors. By October 5, initial implementation was underway, including customs duty reductions.
Key facts
- India-EFTA TEPA entered into force on October 1, 2025 with binding investment commitments.
- EFTA committed USD 100 billion in investment over 15 years to India.
- Deep tariff concessions were agreed upon alongside the investment commitment.
- India's pharmaceutical, chemical, and financial services sectors stand to benefit most.
- Initial customs duty reductions were implemented by October 5, 2025.
- This is India's first FTA with developed European economies including Switzerland.
6-axis classification
CoverageInternationalSubjectEconomicExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourceDeloitte India Economic Outlook October 2025 / Business Standard
Appears in these topics
Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Linked questionMedium
What is the binding investment commitment under the India-EFTA TEPA?
Explanation · Correct answer B
TEPA combines deep tariff concessions with a binding $100 billion investment commitment over 15 years. It is India's first FTA with developed European economies.
Source: Deloitte India Economic Outlook October 2025 / Business Standard
Frequently asked questions
When did the India-EFTA Trade and Economic Partnership Agreement (TEPA) enter into force?
The India-EFTA TEPA entered into force on October 1, 2025, with initial customs duty reductions implemented by October 5, 2025.
Which countries are members of EFTA that signed the TEPA with India?
The European Free Trade Association (EFTA) comprises four countries — Switzerland, Norway, Iceland, and Liechtenstein — all of which are party to the TEPA with India.
What is the investment commitment made by EFTA countries under the India-EFTA TEPA?
EFTA countries committed to investing USD 100 billion in India over a period of 15 years as part of the binding investment commitment included in the TEPA agreement.
Why is the India-EFTA TEPA historically significant for India's trade policy?
The India-EFTA TEPA is India's first Free Trade Agreement with developed European economies, combining deep tariff concessions with a binding investment commitment — a unique feature in India's FTA history.
Which Indian economic sectors are expected to benefit most from the India-EFTA TEPA?
India's pharmaceutical, chemical, and financial services sectors are expected to benefit most from the TEPA, given EFTA countries' strengths in these industries and the agreed tariff concessions.
Was this useful?
Share corrections or missing exam angles with the editorial team.
Send feedback