The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) — comprising Switzerland, Norway, Iceland, and Liechtenstein — entered into force on October 1, 2025. The agreement was originally signed in March 2024 after 16 years of negotiations. A landmark feature of TEPA is a commitment by EFTA countries to facilitate USD 100 billion in investment into India over 15 years and generate one million direct jobs. The agreement provides Indian goods with preferential market access to EFTA countries and covers areas including goods trade, services, intellectual property, investment, and sustainable development. Switzerland's pharmaceutical and financial services sectors are seen as key beneficiaries. TEPA is India's first major FTA-type agreement with European economies and is significant for India's strategy of diversifying trade partnerships beyond Asia.
India–EFTA Trade Agreement (TEPA) Enters into Force from October 1, 2025
India's TEPA with EFTA (Switzerland, Norway, Iceland, Liechtenstein) came into force on October 1, 2025, after 16 years of negotiations. EFTA committed USD 100 billion investment over 15 years and 1 million direct jobs in India. It is India's first major FTA-type deal with European economies.
Key facts
- India's TEPA with EFTA came into force on October 1, 2025 after 16 years of negotiations.
- EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein.
- EFTA committed USD 100 billion investment over 15 years and 1 million direct jobs in India.
- This is India's first major FTA-type agreement with developed European economies.
- The agreement covers tariff concessions, investment, and services sectors.
- TEPA is expected to boost India's pharmaceutical, chemical, and financial services exports.
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Practice MCQ from this story
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Which of the following is NOT a member of the European Free Trade Association (EFTA), partner to the TEPA that entered into force on 1 October 2025?
EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein. Germany is a member of the European Union, not EFTA.
Source: PIB India / Finology Blog
Frequently asked questions
What is TEPA and when did it come into force?
TEPA (Trade and Economic Partnership Agreement) is India's free trade agreement with the EFTA bloc comprising Switzerland, Norway, Iceland, and Liechtenstein. It came into force on October 1, 2025, after 16 years of negotiations.
Which four countries form the EFTA bloc?
The European Free Trade Association (EFTA) comprises four countries: Switzerland, Norway, Iceland, and Liechtenstein. Unlike the EU, EFTA members are not part of the European Union customs union.
What investment and employment commitments did EFTA make under TEPA?
Under TEPA, EFTA committed to USD 100 billion in investment in India over 15 years and pledged to generate 1 million direct jobs in the country. This commitment is a legally binding obligation tied to the agreement.
Why is TEPA significant for India's trade diplomacy?
TEPA is India's first major FTA-type agreement with developed European economies, making it a landmark in India's trade diplomacy. The deal covers tariff concessions, investment promotion, and services sectors including pharmaceuticals, chemicals, and financial services.
Which Indian sectors are expected to benefit most from TEPA?
India's pharmaceutical, chemical, and financial services sectors are expected to gain the most from TEPA through improved market access and tariff concessions. The agreement also opens doors for greater investment flows from EFTA's globally competitive financial and manufacturing industries.
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