The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will come into force on October 1, aiming to drive $500 billion in investments, Union Commerce and Industry Minister Piyush Goyal announced on Saturday.

All four EFTA nations — Switzerland, Norway, Iceland, and Liechtenstein — have ratified the Free Trade Agreement and submitted documents to the depository in Norway. Speaking at a Trade and Investment seminar hosted by ASSOCHAM, Goyal confirmed the FTA’s implementation timeline and its strategic importance.

Signed in March 2024, the FTA commits EFTA to invest at least $100 billion in India over 15 years, creating around one million direct jobs. Goyal stated this FDI will potentially catalyse an overall investment of $500 billion, targeting brownfield, greenfield, and even mature asset sectors.

The FTA opens vast export opportunities for Indian businesses across European and global markets, reinforcing the Make in India initiative and creating avenues for skilled Indian youth. The agreement spans 14 chapters, covering market access, trade facilitation, rules of origin, IPR, services, investment promotion, and more.

With increasing regulatory burdens in Europe making businesses less competitive, India offers a strong alternative production base with its skilled and cost-effective workforce, Goyal added.

EFTA will eliminate tariffs on 92.2% of its tariff lines, covering 99.6% of Indian exports. This includes full access for non-agricultural products and concessions for processed agricultural goods. India will offer concessions on 82.7% of its tariff lines, covering 95.3% of EFTA exports — largely gold imports, with no change in effective duties on gold.

Sensitive sectors under India’s PLI scheme — like pharma, medical devices, and processed food — have been safeguarded. Products such as dairy, soy, coal, and certain agricultural items are excluded from the deal, as outlined in a commerce ministry document.