India's Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA — Switzerland, Norway, Iceland, Liechtenstein) entered into force on October 1, 2025, with EFTA nations committing $100 billion in investments over 15 years. India's headline inflation fell to a historic low of 0.25% in October 2025, with food inflation turning negative at -5.02%, aided by GST rationalisation (effective September 22, 2025) that trimmed approximately 85 basis points from CPI. The RBI maintained its repo rate at 5.50% with a neutral policy stance.
India-EFTA TEPA in Force; India's Headline Inflation at Historic Low of 0.25% in October 2025
AQuick answer
India's Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA — Switzerland, Norway, Iceland, Liechtenstein) entered into force on October 1, 2025, with EFTA nations committing $100 billion in investments over 15 years. India's headline inflation fell to a historic low of 0.25% in October 2025, with food inflation turning negative at -5.02%, aided by GST rationalisation (effective September 22, 2025) that trimmed approximately 85 basis points from CPI. The RBI maintained its repo rate at 5.50% with a neutral policy stance.
Key facts
- India-EFTA TEPA entered into force on October 1, 2025 with $100 billion investment commitment over 15 years.
- India's headline inflation fell to a historic low of 0.25% in October 2025.
- Food inflation turned negative at -5.02%, aided by GST rationalisation trimming 85 basis points from CPI.
- The RBI maintained its repo rate at 5.50% with a neutral policy stance.
- GST rationalisation effective September 22, 2025 was a major driver of the inflation drop.
- EFTA nations include Switzerland, Norway, Iceland and Liechtenstein.
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 · BothSourceBusiness Standard / PIB / RBI (October 2025)
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India's headline CPI inflation fell to what historic low in October 2025, aided by GST rationalisation?
Explanation · Correct answer D
India's headline inflation fell to a historic low of 0.25% in October 2025, with food inflation turning negative at -5.02%, aided by GST rationalisation (effective September 22, 2025) that trimmed approximately 85 basis points from CPI. The RBI maintained the repo rate at 5.50%.
Source: Business Standard / PIB / RBI (October 2025)
Frequently asked questions
When did the India-EFTA TEPA come into force, and what investment commitment did EFTA nations make?
The India-EFTA Trade and Economic Partnership Agreement (TEPA) entered into force on October 1, 2025, with EFTA nations committing $100 billion in investments over 15 years.
Which four countries form the European Free Trade Association (EFTA) that signed TEPA with India?
The four EFTA countries are Switzerland, Norway, Iceland, and Liechtenstein.
What was India's headline inflation figure in October 2025, and what made it historically significant?
India's headline inflation fell to 0.25% in October 2025, a historic low. Food inflation turned negative at -5.02%, partly driven by GST rationalisation effective September 22, 2025, which trimmed approximately 85 basis points from CPI.
What repo rate did the RBI maintain alongside the inflation drop in October 2025, and what was its policy stance?
The RBI maintained its repo rate at 5.50% with a neutral policy stance even as headline inflation fell to a historic low of 0.25%.
How did GST rationalisation contribute to the fall in India's CPI inflation in October 2025?
GST rationalisation, which came into effect on September 22, 2025, reduced the CPI by approximately 85 basis points, making it a major driver of the historic fall in headline inflation to 0.25%.
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