Published: 30 September 2025PIB / Ministry of CommerceEconomy
India-EFTA Trade and Economic Partnership Agreement (TEPA) Enters into Force
The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland and Liechtenstein — officially entered into force on October 1, 2025. The agreement, signed in March 2024, is a landmark as it is India's first Free Trade Agreement with a developed-country bloc. A distinctive feature of TEPA is a binding commitment by EFTA nations to facilitate $100 billion in investments into India over 15 years, targeting 1 million direct jobs.
For India, TEPA provides duty concessions on goods such as pharmaceuticals, processed foods, and engineering products, while EFTA gains improved market access for watches, chocolates, and financial services. The agreement establishes a unique Investment Promotion Chapter — the first in any Indian FTA — making it a template for future trade negotiations. It positions India as a credible partner for developed economies seeking supply-chain diversification in the post-COVID era.
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Q: Examine the salient features of the India-EFTA Trade and Economic Partnership Agreement (TEPA) that entered into force on 1 October 2025.
Answer (50 words):
The India-EFTA TEPA, signed March 2024, entered into force on 1 October 2025 — India's first FTA with a developed-country bloc (Switzerland, Norway, Iceland, Liechtenstein). EFTA committed $100 billion investment over 15 years targeting 1 million direct jobs. TEPA's Investment Promotion Chapter is India's first in any Indian trade pact.
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Linked questionMedium
The India-EFTA TEPA that entered into force on 1 October 2025 established which unique chapter, considered a first in any Indian FTA?
Explanation · Correct answer DTEPA establishes a unique Investment Promotion Chapter — the first in any Indian FTA — making it a template for future trade negotiations.
Frequently asked questions
When did the India-EFTA Trade and Economic Partnership Agreement (TEPA) come into force?
The India-EFTA TEPA came into force on October 1, 2025, making it India's first Free Trade Agreement with a developed-country bloc.
Which countries are members of EFTA?
EFTA (European Free Trade Association) comprises four countries: Switzerland, Norway, Iceland, and Liechtenstein.
What investment and employment commitments did EFTA make under TEPA?
Under TEPA, EFTA committed to invest $100 billion in India over 15 years and help create 1 million jobs in the country.
What is unique about the Investment Promotion Chapter in India-EFTA TEPA?
The Investment Promotion Chapter in the India-EFTA TEPA is a first-of-its-kind provision in India's trade agreements, specifically aimed at promoting and facilitating foreign direct investment from EFTA nations into India.
What does TEPA stand for and what is its significance for India?
TEPA stands for Trade and Economic Partnership Agreement. It is significant as it is India's first FTA with a developed-country bloc, opening new avenues for trade, investment, and job creation.
