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. It is the first FTA signed by India that incorporates a binding commitment on investment and job creation: EFTA countries pledged $100 billion in FDI over 15 years ($50 billion in first 10 years and an additional $50 billion in the next 5 years) and committed to facilitating 1 million direct jobs in India. EFTA offered 92.2% of tariff lines covering 99.6% of India's exports, including 100% concessions on non-agricultural products. A Dedicated EFTA Desk has been operational since February 2025 as a single-window for investment facilitation.
India-EFTA TEPA Enters into Force on October 1, 2025: $100 Billion Investment and 1 Million Jobs Pledged
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. It is the first FTA signed by India that incorporates a binding commitment on investment and job creation: EFTA countries pledged $100 billion in FDI over 15 years ($50 billion in first 10 years and an additional $50 billion in the next 5 years) and committed to facilitating 1 million direct jobs in India. EFTA offered 92.2% of tariff lines covering 99.6% of India's exports, including 100% concessions on non-agricultural products. A Dedicated EFTA Desk has been operational since February 2025 as a single-window for investment facilitation.
Key facts
- India-EFTA TEPA entered into force on October 1, 2025 with Switzerland, Norway, Iceland and Liechtenstein.
- EFTA pledged $100 billion in FDI over 15 years and committed to facilitating 1 million direct jobs in India.
- This is the first FTA signed by India incorporating a binding investment and job creation commitment.
- EFTA offered 92.2% tariff lines covering 99.6% of India's exports with 100% concession on non-agricultural products.
- A Dedicated EFTA Desk has been operational since February 2025 as a single-window for investment facilitation.
- The first $50 billion is committed within 10 years and the next $50 billion in the subsequent 5 years.
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Practice MCQ from this story
SolveTap an option below. Correct or incorrect feedback appears instantly.
Which of the following is NOT a member of the European Free Trade Association (EFTA) that signed TEPA with India?
EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. Sweden is a member of the EU, not EFTA.
Source: PIB / EFTA.int
Frequently asked questions
Which four countries form EFTA, and on what date did the India-EFTA TEPA come into force?
EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein. The Trade and Economic Partnership Agreement (TEPA) entered into force on October 1, 2025.
What makes India-EFTA TEPA historically unique among India's free trade agreements?
It is the first FTA signed by India that includes a legally binding commitment on investment ($100 billion FDI over 15 years) and job creation (1 million direct jobs) — not just tariff concessions.
How is the $100 billion EFTA investment commitment structured across time?
EFTA countries committed to $50 billion in FDI within the first 10 years, and an additional $50 billion in the subsequent 5 years — totalling $100 billion over 15 years.
What tariff concessions did EFTA offer India under the TEPA?
EFTA offered concessions on 92.2% of tariff lines, covering 99.6% of India's exports, with 100% concession on non-agricultural products.
What is the EFTA Desk, and when did it become operational?
The EFTA Desk is a dedicated single-window facility to facilitate investment from EFTA countries into India. It has been operational since February 2025.
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