India EFTA Sign TEPA New Age of Trade and Cooperation

In 2025, India signed its first holistic trade agreement with the European Free Trade Association (EFTA), and this was its first major bilateral trade agreement with the developed European economies. The EFTA union includes Switzerland, Norway, Iceland and Liechtenstein. TEPA will transform the trade, investment, and technological collaboration of India and help it become as a global economic superpower.

Key Features of TEPA

EFTA under TEPA has been guaranteeing investments of 100 billion dollars within a period of 15 years, which will result in direct creation of one million jobs in India. The agreement removes or lowers tariffs along 92.2% of tariff lines, 99.6% of the export value of India to EFTA. The non-agricultural products like organic chemicals, textiles, gems, jewellery and industrial products will have duty-free access, which will offer new opportunities to Indian exporters in developed markets.

Workforce and Services.

TEPA increases the accessibility of the services sector in India with Switzerland (128 sub-sector), Norway (114 sub-sector), Iceland (107 sub-sector) and Liechtenstein (107 sub-sector) being committed. These are IT, business services and skilled workforce mobility which further consolidate the position of India as global services hub. More selections and competitive prices will be enjoyed by consumers in the two regions.

Strategic and Technological Benefits.

In addition to market access, TEPA extends the cooperation in precision engineering, pharmaceuticals, renewable energy, health sciences, and frontier technologies. The technological advantage of EFTA supplements the skilled workforce in India, creating innovation and long-term development.

Increasing Renewable and Nuclear Energy.

The 500 GW renewable capacity goal of 2030 and Net Zero of 2070 of India mirrors the technology and green finance opportunities of TEPA. European partnerships will speed up the transition of clean energy in India as it already has 243 GW capacity installed in 2025. TEPA also opens up opportunities to thorium-based nuclear energy, of which India is the world leader with 25 percent reserves. India can utilize Norway because their expertise on thorium testing will support pilot projects in India and give it a way to clean and stable energy.

Economic Diplomatic and Prospects.

TEPA highlights the strategic economic diplomacy of India that sees its advantage to include short-term trade benefits alongside long-term investment and technology benefits. It builds resilience throughout the supply chain, employment, and climate action, positioning future international agreements. The agreement emphasizes the changing position of India as a market and innovation partner in sustainable development.