India–EFTA Trade Pact Comes Into Force; Targets $100 Billion Investment, One Million Jobs

The India–EFTA Trade and Economic Partnership Agreement (TEPA) officially came into force at the Prosperity Summit in New Delhi on Wednesday (1 October), marking a milestone in India’s global trade engagement.

The agreement, signed with the European Free Trade Association (EFTA) nations—Switzerland, Norway, Iceland, and Liechtenstein—sets an ambitious investment target of $100 billion over 15 years and aims to create one million direct jobs in India.

Union Minister of Commerce and Industry, Shri Piyush Goyal, hailed TEPA as a defining moment in India’s economic engagement with Europe, stressing its unique nature as the first trade pact to incorporate a firm investment commitment.

He said the agreement represents a trusted partnership between friends, built on mutual respect and sensitivities.

The agreement promises wide-ranging access to goods and services across both sides, unlocking opportunities in life sciences, clean energy, precision engineering, food processing, artificial intelligence, shipbuilding, and education.

He emphasised its timing—coming into force on Navami, coinciding with Vijaya Dashami—as symbolic of prosperity and clarity.

The minister said the pact provides stability and certainty amid global trade volatility and disruption.

The agreement harnesses what the Commerce Ministry described as the “Power of Five”:

• India – scale, demand, and skilled talent.

• Switzerland – finance, precision manufacturing, and capital goods.

• Norway – maritime expertise and clean energy.

• Iceland – clean-tech and digital ingenuity.

• Liechtenstein – high-value manufacturing and engineering.

This partnership, the ministry said, would strive to drive trade, investment, and technology flows over the next two to three decades.

Goyal highlighted India’s strong fundamentals, from low data costs—just 3 per cent of US levels—to its nearly 2,500 global capability centres that already serve Fortune 500 companies.

He also cited long-standing Swiss investments such as Nestlé and ABB, noting that their high market valuations reflect confidence in India’s growth story.

Switzerland’s State Secretary for Economic Affairs, Helene Budliger Artieda, described TEPA as more than a legal document, calling it a “win-win partnership” that reflects EFTA companies’ commitment to India’s growth story.

The agreement is expected to particularly benefit farmers, MSMEs, and services exporters, with improved market access, reduced compliance costs, and smoother professional mobility.

Roadmaps are being laid for key sectors like engineering, pharma, textiles, apparel, and marine exports, alongside training and logistics upgrades to ensure tangible outcomes.

Goyal stressed that prosperity under TEPA would align with India’s philosophy of Antyodaya—ensuring that growth reaches the last person at the bottom of the pyramid.

Commerce Secretary Rajesh Agrawal framed the agreement as the beginning of a new era of shared growth, innovation and prosperity.

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Also Read: India-EFTA Free Trade Deal To Take Effect From 1 October; $100 Billion Investment Potential Over 15 Years