India-EFTA Trade Pact Strengthens Economic Ties with Europe

• TEPA targets $100B investment and 1M jobs with EFTA nations
• Opens sectors like AI, clean energy, manufacturing, and tourism
• Predictable framework with 100% FDI and strong growth potential

The India–EFTA Trade and Economic Partnership Agreement (TEPA) was lauded as a milestone in India’s economic engagement with Europe, with a goal of USD 100 billion in investment and one million direct jobs.  In announcing the agreement, Commerce Minister Piyush Goyal called it a trusted partnership between friends built on mutual respect and understanding.

TEPA enlarges trade access for goods and services to Switzerland, Norway, Iceland and Liechtenstein, and is the first agreement to contain a binding investment commitment to balance interests and provide fairness. The India EFTA trade pact strengthens India Europe economic ties by expanding trade and investment opportunities across key sectors.

Despite the combined populations of the four EFTA countries being less than that of the city of Mumbai, Goyal noted that the countries have big heart and tremendous potential. He mentioned that TEPA was particularly timely in its launch with Navami and Vijaya Dashami, both symbols of prosperity and triumph.

Also Read: Swan Defence, Samsung Heavy Sign MoU for Shipbuilding

The agreement provides a beacon of stability and certainty amid volatility in global trade while opening opportunities in life sciences, clean energy, precision engineering, food processing, artificial intelligence, education, culture, tourism, shipbuilding and advanced manufacturing. India expects to partner with Iceland on geothermal energy, Norway on maritime services, and Switzerland and Liechtenstein on innovation, R&D and high value manufacturing.

India’s comparative benefits - such as some of the lowest data costs anywhere in the world - have been conducive to establishing almost 2,500 global capability centers supporting Fortune 500 companies. This India EFTA agreement promotes deeper India Europe trade collaboration and encourages increased India Europe investment.

Goyal specifically mentioned the 100-year-old presence of Swiss companies like Nestlé and ABB in India to examplify India's position as a strong market and location for global growth. He invited EFTA companies to take advantage of India's open, transparent, and investor-friendly landscape, where nearly every sector allows for 100 percent FDI.

Commerce Secretary Rajesh Agrawal emphasized TEPA represents a fresh start for mutual growth, innovation, and prosperity. The agreement ultimately represents confidence by the rest of the world in the long-term economic direction of India, and the country's approach to achieving the transition from the world's fourth largest economy to the world's third.