TEPA – A Transformative Chapter in India’s Trade Journey

From October 1, 2025, the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) will come into effect, marking a historic milestone in India’s trade diplomacy.
Signed on March 10, 2024, TEPA is India’s first FTA with four developed European nations—Switzerland, Norway, Iceland, and Liechtenstein—and uniquely ties market access with investment and job creation.
Investment and Employment Commitments
TEPA carries a binding pledge: USD 100 billion in foreign direct investment over 15 years and creation of 1 million direct jobs. Article 7.1 specifies USD 50 billion FDI within the first decade and another USD 50 billion in the following five years. Crucially, this excludes portfolio inflows, focusing instead on long-term capital for manufacturing, technology, and infrastructure.
Market Access in Goods and Services
EFTA’s offer covers 92.2 percent of tariff lines, including 99.6 percent of India’s exports, with complete liberalization of non-agricultural goods and concessions on processed agricultural products. India’s exports in machinery, organic chemicals, textiles, and processed foods are expected to gain significant traction. In agriculture, guar gum, basmati rice, pulses, and fresh produce stand to benefit. Coffee and tea will enjoy duty-free access, boosting India’s premium exports.
India has offered commitments in 105 service sub-sectors, while EFTA has extended enhanced access in up to 128 sub-sectors. Key areas of opportunity include IT, business services, education, and audio-visual industries. The agreement also facilitates Mutual Recognition Agreements (MRAs) in professional services—benefiting nurses, chartered accountants, and architects.
Sustainability, Technology, and Strategic Gains
TEPA goes beyond trade. It ensures TRIPS-level IPR protection while safeguarding India’s generic medicines. It embeds sustainability principles and commits to skills, R&D, and technology collaboration in renewable energy, precision engineering, and life sciences. The dedicated India–EFTA Desk will drive investments, streamline compliance, and promote SME partnerships.
With TEPA, India secures unprecedented access to EFTA’s high-value markets while protecting sensitive sectors like dairy and pharma. More than an FTA, it is a model agreement—linking trade to investment, jobs, and technology transfer—positioning India for sustainable growth in the next decade and beyond.
-Yogeshwar Sangwan, Ambassador of India to the Lao PDR

By Advertorial Desk
(Latest Update October 6, 2025)