The agreement offers binding commitment of $100 bn investment and 1 million direct jobs in the next 15 years.
- EFTA nations: Iceland, Liechtenstein, Norway, and Switzerland.
- Among these, Switzerland is India’s largest trading partner, followed by Norway.
- It is the first Free Trade Agreement (FTA) signed by India to incorporate a binding commitment specifically linked to investment and job creation.
Key Features of the Agreement
- Market Access (Goods): EFTA offers substantial access, covering 100% of non-agricultural products. India protects sensitive sectors, including dairy, soya, coal, pharma, and medical devices.
- Services & Mobility: The pact stimulates exports in IT, business services, and education.
- It enables Mutual Recognition Agreements (MRAs) in professional services, such as nursing, chartered accountancy, and architecture.
- It offers improved access via Mode 1 (Digital delivery of services), Mode 3 (Commercial presence) and Mode 4 (Greater certainty for entry and temporary stay of key personnel).
- It enables Mutual Recognition Agreements (MRAs) in professional services, such as nursing, chartered accountancy, and architecture.
- Chemicals and Allied Products: EFTA has offered zero or reduced tariffs on more than 95% of India’s exports. India has granted market access to nearly 80% of its tariff lines covering 95% of EFTA’s exports.
- Intellectual Property Rights: It ensures IPR commitments at TRIPS level. India’s interests in generic medicines and concerns related to evergreening of patents have been fully addressed.
- Key Export Gains: Indian exporters gain significantly improved access in Textiles, Engineering Goods, and Processed Food Products.
TEPA is considered a “model agreement” and is expected to significantly reinforce the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives. Furthermore, the dedicated India–EFTA Desk, operational since 2025, serves as a single-window mechanism to streamline regulatory navigation and facilitate EFTA investments in India
