The Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) bloc which comprises countries namely, Switzerland, Norway, Iceland, and Liechtenstein, was officially came into force on October 01, 2025 during the Prosperity Summit held in New Delhi, Delhi.
- This marks India’s 1st ever Free Trade Agreement (FTA) with 4 developed European nations.
- The Prosperity Summit was hosted by Union Minister Piyush Goyal, Ministry of Commerce and Industry (MoC&I).
Exam Hints:
- What? TEPA between India-EFTA
- Came into force : October 01, 2025
- Where? Prosperity Summit, in New Delhi (Delhi)
- Organised by: MoC&I
- EFTA Member Countries: Switzerland, Norway, Iceland, and Liechtenstein
- Significance: India’s first Free Trade Agreement with four developed European nations
- Purpose: Free Trade between Indian 4 developed European Countries
- Signed in: March 2024
- Key Targets: To attract Investments worth USD 100 billion and 1 million (10 lakh) direct jobs in India
- Time Period: Next 15 Years
About India-EFTA TEPA:
Background: The agreement was originally signed on March 10, 2024 between MoC&I, and EFTA bloc in New Delhi.
- The agreement was finalized after 21 rounds of negotiations, which started in 2008.
Key Targets: EFTA has pledged to attract foreign direct investments worth USD 100 billion in India in the next 15 years.
- Also, the agreement has the potential to generate 1 million direct jobs in India, through such investments.
Key Focus Areas: The agreement comprises 14 chapters focused on areas like: market access related to goods, trade facilitation, investment promotion, market access to services, Intellectual Property Rights (IPR), trade and sustainable development.
Market Access for Goods: EFTA offers 92.2% of its tariff lines which includes 99.6% of India’s exports.
- Also, EFTA’s market access covers 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAPs).
- Similarly, India offers 82.7% of its tariff lines which covers 95.3% of EFTA exports.
Sub-Sectors Covered: As per the FTA, India offers 105 sub-sectors to EFTA and secured commitments in 128 sub-sectors from Switzerland; 114 from Norway; 107 from Liechtenstein; and 110 from Iceland.
Services Sector: TEPA is expected to stimulate India’s services exports in various sectors such as Information Technology (IT) services, business services, personal, cultural, sporting and recreational services, among others.
- Services from EFTA will provide better access through digital delivery of Services (Mode-1), commercial presence (Mode-3) and enhanced commitments and certainty for entry and temporary stay of key personnel (Mode-4).
- The agreement has also provisions for Mutual Recognition Agreements (MRAs) in professional services like: Nursing, Chartered Accountants (CAs), architects, among others.
EFTA Desk: It is a single-window mechanism for investment facilitation to support EFTA businesses in investing, expanding, and establishing operations in India, has been operational since February 2025.
- It also acts as the main channel for promoting continuous business-government dialogue, ensuring continuous engagement between India and EFTA.
Important Terms:
FTAs: These are agreements between two or more countries aimed at reducing or removing trade barriers, such as tariffs and quotas, on goods and services.
About European Free Trade Association (EFTA):
It was established in 1960 by the EFTA Convention for the promotion of free trade and economic integration for the benefit of its 4 member states.
Secretary-General- Kurt Jager (Liechtenstein)
Headquarters- Geneva, Switzerland
