$100 billion investment and a wave of new jobs
A big achievement has been achieved in the business history of India. The Trade and Economic Partnership Agreement (TEPA) with the India-European Free Trade Association (EFTA), which was signed on 10 March 2024, has now officially come into force from 1 October 2025. This agreement is India’s first free trade agreement with four developed European countries – Switzerland, Norway, Iceland and Liechtenstein.
100 billion dollars investment and 1 million jobs
According to the government, this agreement is expected to bring investment of $ 100 billion (about Rs 8.3 lakh crore) in India in the next 15 years. This is likely to create more than 10 lakh new jobs. EFTA countries have promised to bring investment of 50 billion dollars in the first ten years and 50 billion dollars in the next five years. This investment will be especially in sectors like renewable energy, digital technology, engineering and life sciences. For the convenience of investors, the government has created a special India-EFTA desk, which will work as a single window platform for all processes.
Both sides will get equal benefit
Under the TEPA agreement, EFTA countries have given exemption to India on 92.2 per cent of tariff lines, which will benefit 99.6% of India’s exports. In return, India has given access to 82.7% of tariff lines, covering 95.3% of EFTA’s exports. India has kept its dairy, soya, coal and some agricultural products under protection so that domestic industries are not affected.
Opportunities for service sector and professionals
India’s strong service sector will also benefit from this agreement. India will get better market access in 105 sub-sectors. Also, Mutual Recognition Agreement (MRA) will be implemented between the two professionals in work like nursing, accountancy and architecture, in which Indian professionals will get more opportunities to work in Europe.
New direction for exports
Demand for Indian products like agriculture, marine products, machinery, coffee, tea and processed foods is expected to increase in EFTA countries as the duty on these has been reduced. Apart from this, textile, electronics, chemical and engineering industries will also benefit greatly.
New era of partnership
The government says that TEPA is not just a trade agreement, but a partnership based on the common development and trust of both the areas. India’s growing industrial production and the technological capabilities of the EFTA countries will together write a new chapter of sustainable development, innovation and job creation. This is also the first time that binding provisions have been included in any trade agreement with India to increase investment and employment. This is expected to give new impetus to India’s economy in the coming year.