The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) officially entered into force this week, marking a new era of cooperation in trade, investment, and sustainable growth. Signed earlier in 2024, the pact connects India with Iceland, Liechtenstein, Norway, and Switzerland, members of EFTA, strengthening bilateral economic relations and promoting mutual prosperity.
Key Provisions
The agreement aims to enhance trade in goods, services, and investments, with a focus on market access, intellectual property, digital trade, and sustainable development. Under TEPA, EFTA nations have committed to invest up to USD 100 billion in India over 15 years, creating approximately 1 million direct jobs in various sectors, including manufacturing, pharmaceuticals, and renewable energy.
The deal also emphasizes ease of doing business, reducing tariffs on a wide range of products and improving regulatory cooperation between Indian and EFTA authorities.
Economic Impact
India is expected to gain better access to high-value European markets for sectors such as textiles, gems and jewellery, information technology, and engineering goods. Conversely, EFTA countries will benefit from India’s growing demand for medical equipment, precision instruments, and advanced technologies.
The agreement also aligns with India’s Make in India and Atmanirbhar Bharat initiatives, encouraging technology transfer and sustainable industrial development.
Joint Commitment
Both parties reaffirmed their commitment to promoting fair trade, transparency, and sustainable growth. A Joint Committee has been established to oversee the implementation and review of the agreement, ensuring that it continues to support innovation, job creation, and environmental protection.
India Advocacy Insight
The TEPA’s enforcement marks a strategic milestone for India’s global trade ambitions. It strengthens India’s foothold in European markets while reinforcing its image as a reliable trade and investment destination. The long-term partnership is expected to catalyze economic growth, foster innovation, and deepen diplomatic ties between India and EFTA member nations.
