The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) has completed two years since its signing. This agreement, effective since October 1, 2025, aims to strengthen cooperation in trade, investment, services, and technology between India and EFTA member countries – Iceland, Liechtenstein, Norway, and Switzerland. Prime Minister Narendra Modi highlighted India’s growing network of trade partnerships, emphasizing the significance of the country’s FTAs with 38 nations in reshaping its trade strategy.
Prime Minister Modi emphasized that these agreements connect India with diverse global markets, offering Indian producers opportunities to access economies across continents. He also praised India’s service sector, positioning the country as a hub for Global Capability Centres. With improved regulations and mobility provisions under trade pacts, Indian professionals are expected to benefit from increased opportunities abroad.
Furthermore, PM Modi noted the advancements in India’s manufacturing sector and how the FTAs will aid in integrating Indian products more deeply into global supply chains. Union Commerce and Industry Minister Piyush Goyal highlighted that the India-EFTA TEPA is strategically designed to achieve long-term economic objectives. Goyal mentioned that the agreement will enhance Indian exporters’ access to high-income European markets and facilitate investments worth $100 billion over the next 15 years.
The pact will enable Indian industries to access advanced machinery, quality inputs, and technology partnerships crucial for strengthening manufacturing capabilities. Under this agreement, EFTA countries will reduce or eliminate tariffs on 92.2% of tariff lines, covering nearly 99.6% of India’s exports to the region. In return, India will offer tariff concessions on 82.7% of tariff lines, accounting for about 95.3% of EFTA exports. Sensitive sectors like dairy, soya, coal, and certain agricultural products will remain protected, while the effective duty on gold will remain unchanged.
