India and European Free Trade Association Sign Pact to Unlock $100 Billion Investment and 1 Million Jobs
New Delhi, 11 October 2025 – The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) has officially come into effect. The pact is expected to bring $100 billion in new investments and create 1 million direct jobs in India over the next 15 years.
This is India’s first trade agreement with four developed European countries -Switzerland, Norway, Iceland, and Liechtenstein.
Key Highlights
- The agreement took effect on 1 October 2025, after being signed on 10 March 2024.
- EFTA countries will invest $100 billion in India – $50 billion in the first 10 years and another $50 billion in the next five.
- The deal includes a binding commitment to create 1 million direct jobs – a first in any Indian trade agreement.
- Market access:
- EFTA will remove tariffs on 99.6% of India’s exports (covering 92.2% of its tariff lines).
- India will remove tariffs on 95.3% of EFTA’s exports (covering 82.7% of its tariff lines).
- Sensitive sectors like dairy, coal, soya, and pharmaceuticals are protected through phased tariff reductions.
- Services gain: India gets wider access in IT, education, healthcare, and professional mobility, with mutual recognition agreements (MRAs) in nursing, accountancy, and architecture.
- Technology & sustainability: The pact promotes cooperation in green energy, research, and sustainable manufacturing.
- Supports Make in India and Atmanirbhar Bharat, focusing on innovation-led growth and global partnerships.
| Focus Area | Commitment / Impact | Key Outcome |
|---|---|---|
| Investment | $100B FDI in 15 years | 1 million direct jobs |
| Market Access (EFTA → India) | 92.2% tariff lines | Boost in Indian exports (99.6% coverage) |
| Market Access (India → EFTA) | 82.7% tariff lines | Safeguards for key domestic sectors |
| Services & Mobility | MRAs in professional fields | Skilled Indian workforce access to EU markets |
| Sustainability & Innovation | Green tech, R&D cooperation | Long-term industrial resilience |
The India–EFTA TEPA is more than a trade deal – it’s a partnership for investment, jobs, and technology. By linking Indian industry with Europe’s innovation and sustainability goals, the agreement strengthens India’s path toward becoming a developed economy (Viksit Bharat) by 2047.
Source : PIB(Ministry of Commerce)
