India–EFTA Trade and Economic Partnership Agreement (TEPA) Comes Into Force on 1 October 2025

The India–EFTA TEPA opens new opportunities for trade, investment, and cooperation across key sectors, strengthening ties between India and Switzerland, Norway, Iceland, and Liechtenstein.

New Delhi, 1 October 2025 – Today marks a historic milestone in India’s trade diplomacy as the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) officially comes into force. Signed earlier this year, the India–EFTA TEPA brings together India and the four EFTA countries—Switzerland, Norway, Iceland, and Liechtenstein—in a landmark pact designed to deepen economic integration and foster sustainable growth.

The India–EFTA Trade and Economic Partnership Agreement (TEPA) marks a historic milestone, establishing India’s first free trade agreement with four developed European nations and committing USD 100 billion in investments and 1 million direct jobs over 15 years. TEPA enhances market access for goods and services, strengthens intellectual property rights, and fosters sustainable, inclusive development, while supporting flagship initiatives such as Make in India and Atmanirbhar Bharat.

Complementing this milestone, the India–EFTA Desk has been inaugurated as a single-window platform to facilitate EFTA investments in renewable energy, life sciences, engineering, and digital transformation, while fostering joint ventures, SME collaborations, and technology partnerships. TEPA is already being described as a “model agreement”, reaffirming India’s readiness to build a robust future with EFTA.

The agreement is expected to significantly boost India–EFTA trade relations, encouraging more investments and greater market access. By reducing barriers and enhancing cooperation, TEPA creates new opportunities across pharmaceuticals, technology, renewable energy, manufacturing, financial services, and education.

Welcoming the entry into force of the agreement, Swiss Federal Councillor Guy Parmelin underlined its economic significance:“EFTA countries gain market access to a major growth market. Our companies strive to diversify their supply chains while rendering them more resilient. India, in return, will attract more foreign investment from EFTA, which will ultimately translate into an increase in good jobs. … All in all, the TEPA will allow us to make better use of our economic potential and create additional opportunities for both India and the EFTA States.”

For Iceland, the partnership is a chance to tap into new sectors of growth. Martin Eyjólfsson, Permanent Secretary of State at Iceland’s Ministry of Foreign Affairs, observed that the agreement will broaden horizons:“TEPA opens vast opportunities to expand our bilateral trade, paving the way for Icelandic companies to thrive in India’s dynamic market. From renewable energy to fisheries, the potential for collaboration is truly endless. It is now our shared responsibility to promote and facilitate trade and investment opportunities between our countries — a significant step in that direction being taken with the launch of the EFTA Desk here today.”

Norway echoed similar optimism, stressing that the agreement also strengthens political and social bonds. May-Elin Stener, Ambassador of Norway to India, said: “We have an extremely productive and constructive dialogue at the political level. The date the 10 March 2024 is historic in our relationship. On that day we signed the EFTA India Trade and Partnership agreement here in Delhi. The agreement will be an important instrument to advance trade and investments and increase people-to-people contact between Norway and India.”

From Liechtenstein’s perspective, TEPA demonstrates how even smaller economies can make a meaningful contribution to India’s development journey.

Dominique Hasler, Minister of Foreign Affairs, Education and Sports of Liechtenstein, emphasized: “As small as Liechtenstein may seem in absolute terms in comparison to India, I am convinced that our companies will make a valuable and high quality contribution to the realization of India’s economic aspirations, be it for enhancing infrastructure, boosting manufacturing or fostering innovation and technology as well as a highly qualified workforce.”

Indian officials have also highlighted TEPA’s innovative framework.

According to the Press Information Bureau, the agreement is “a modern and ambitious agreement that incorporates, for the first time in any FTA signed by India, a commitment linked to investment and job creation.”

As of today, 1 October 2025, businesses, investors, and institutions across both regions can begin to explore the benefits of this long-awaited agreement. With more trade, more growth, and more connections, the India–EFTA TEPA truly represents one agreement with endless possibilities.