India’s free trade agreement with the European Free Trade Association (EFTA) bloc has officially come into force, marking a major milestone in the country’s efforts to expand access to high-income markets. The Trade and Economic Partnership Agreement (TEPA), which took effect on October 1, is projected to generate investments worth US$100 billion and create around one million jobs over the next 15 years.
Commerce and industry minister Piyush Goyal described the pact as “historic”, calling it a breakthrough that opens lucrative markets for Indian farmers, fishermen, and small businesses. Unlike other free trade agreements, TEPA includes a formal investment commitment — a first in global trade pacts — with EFTA governments pledging to facilitate capital inflows into India. The EFTA bloc consists of Switzerland, Norway, Iceland and Liechtenstein, with a combined per capita income exceeding US$100,000.
Officials say this investment assurance gives TEPA a distinct edge over traditional trade deals, linking market access with long-term development goals. Goyal said India has “shed the hesitations of the past”, adding that such partnerships “don’t just open doors, they sharpen our industries, instilling competitiveness and quality that propel us forward.”
The agreement covers trade in goods and services, intellectual property, sustainability, labour standards, and cooperation on regulatory frameworks. For India, the benefits extend well beyond tariffs. Agricultural and seafood exporters are among the biggest winners, with improved access for rice, pulses, fruits, vegetables, millets and cashews. Processed food exports, including biscuits, confectionery, chocolates, and sauces, will also gain from duty cuts.
Sensitive areas like dairy have been protected, while the fisheries sector is set to benefit from smoother export procedures and regulatory cooperation. “Fishermen rejoice as exports of frozen shrimp, prawns, and squid will surge through seamless standards cooperation,” Goyal said.
India has received just US$11.9 billion in cumulative FDI from EFTA countries over the past 25 years. The new deal aims to change that trajectory, with a US$100 billion investment pledge representing what Goyal called a “quantum leap.” The investment is expected to generate one million direct jobs and many more indirectly. In 2024–25, India’s total FDI reached US$81 billion — a 14% rise from the previous year — and the minister suggested TEPA will build further on this momentum.
Beyond goods, the agreement expands opportunities for Indian professionals in sectors such as IT, business, cultural services, and education. It also paves the way for Mutual Recognition Agreements (MRAs) in fields like nursing, accountancy, and architecture, allowing smoother movement of skilled workers between India and EFTA countries.
On sustainability, TEPA reaffirms commitments to the Paris Agreement and International Labour Organization conventions, promoting fair labour standards, environmental protection, and gender equality. It also encourages green technology exchange and cooperation on biodiversity conservation and climate action. “It fosters collaboration on climate action, gender equality, and biodiversity conservation, ensuring fair wages, safe jobs, and a greener planet,” Goyal said.
The EFTA deal comes amid India’s growing list of trade partnerships under the Modi government, following agreements with the United Kingdom, Australia, and the United Arab Emirates. Negotiations with the European Union are also progressing, and New Delhi’s next focus is likely to be on implementing TEPA effectively while keeping up momentum with future trade partners.
Goyal said the agreement reflects India’s evolution into a reliable trade and investment hub, supported by policies such as the Production Linked Incentive (PLI) scheme, PM Gati Shakti, and the National Logistics Policy. In his words, “A child born in Modi’s India gets as many opportunities at home as in the Alps, the land of fire and ice, or in the land of the midnight sun.”
