The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will come into force from October 1, Commerce and Industry Minister Piyush Goyal announced on Saturday. The free trade pact was signed on March 10 this year after nearly 16 years of negotiations.“India-EFTA TEPA to come into effect from 1st October,” Goyal posted on X, confirming the implementation date of the landmark agreement.The EFTA bloc, comprising Switzerland, Iceland, Norway, and Liechtenstein, has committed to investing $100 billion in India over 15 years — a first-of-its-kind pledge in any trade agreement signed by India to date, PTI reported. The investment will be split into two phases: $50 billion over the first 10 years and another $50 billion in the following five years. The pact is expected to help create one million direct jobs in India.In exchange, India will open its markets to a wide range of EFTA exports. The country has offered concessions on 82.7% of its tariff lines, which cover 95.3% of EFTA’s exports. Notably, over 80% of these imports are gold. Switzerland is India’s largest trading partner within the bloc, while trade volumes with Iceland, Norway, and Liechtenstein remain limited.Indian consumers can expect more affordable high-quality Swiss goods, including watches, chocolates, biscuits, and clocks, as customs duties on these products will be phased out over a 10-year period under the agreement.The services sector is another key component of the TEPA. India has opened up 105 sub-sectors to the EFTA countries, including segments like accounting, computer services, distribution, health, and business services. In return, India has secured access to 128 sub-sectors in Switzerland, 114 in Norway, 107 in Liechtenstein, and 110 in Iceland.Indian service providers in areas such as legal, audio-visual, R&D, computer services, and auditing are expected to benefit from enhanced market access.The pact also presents a strategic opportunity for Indian exporters to deepen integration with European Union markets. Over 40% of Switzerland’s global services exports are directed toward the EU, offering Indian firms a potential springboard into the region via Swiss partnerships.India-EFTA bilateral trade stood at $24.4 billion in FY25.
