Published: 30 September 2025PIBEconomy
India-EFTA Trade and Economic Partnership Agreement (TEPA) Enters Into Force
The India-EFTA Trade and Economic Partnership Agreement (TEPA) came into effect on October 1, 2025, marking India's first free trade agreement with four developed European nations — Switzerland, Norway, Iceland, and Liechtenstein. The agreement was originally signed on March 10, 2024, in New Delhi.
Under TEPA, EFTA has committed to promote investments of USD 100 billion in India over 15 years and facilitate 1 million direct jobs. EFTA offered 92.2% of tariff lines encompassing 99.6% of India's exports. The pact covers 14 chapters including goods, services, intellectual property, investment promotion, and sustainable development.
0Mains angle
Q: Examine the economic significance of the India-EFTA Trade and Economic Partnership Agreement (TEPA) that entered into force on 1 October 2025.
Answer (50 words):
TEPA, signed 10 March 2024 and effective 1 October 2025, is India's first FTA with Switzerland, Norway, Iceland and Liechtenstein. EFTA committed 100 billion dollars of investment and 1 million direct jobs over fifteen years. Fourteen chapters cover 92.2 per cent tariff lines spanning 99.6 per cent of Indian exports.
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India agreed to explore linking UPI with the fast payment system of which country during PM Modi's February visit?
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Frequently asked questions
What is India-EFTA TEPA and when did it enter into force?
The **India-EFTA Trade and Economic Partnership Agreement (TEPA)** entered into force on **October 1, 2025** — India's first FTA with four developed European nations: **Switzerland, Norway, Iceland, and Liechtenstein**.
When was India-EFTA TEPA originally signed?
The **India-EFTA TEPA** was originally signed on **March 10, 2024 in New Delhi**, and came into force on **October 1, 2025**, covering 14 chapters on goods, services, IP, investment, and sustainable development.
What investment commitment did EFTA make under TEPA?
**EFTA committed to promote investments of USD 100 billion** in India over **15 years** and facilitate **1 million direct jobs** as part of the India-EFTA TEPA — a binding investment target unique in India's FTA history.
What trade coverage does India-EFTA TEPA offer?
**EFTA offered 92.2% of tariff lines** encompassing **99.6% of India's exports** duty-free/reduced-duty access to EFTA markets. India-EFTA bilateral trade has grown significantly since the pact's signing in March 2024.
What chapters does India-EFTA TEPA cover?
India-EFTA TEPA covers **14 chapters** including **goods, services, intellectual property, investment promotion, government procurement, and sustainable development** — India's most comprehensive FTA with developed European nations.
