India-EFTA Trade Agreement: Two Years of Economic Synergy and Opportunity

The India-EFTA Trade and Economic Partnership Agreement (TEPA) marks two years of fostering trade, investment, and technological cooperation between India and EFTA nations. The agreement enhances market access for Indian exporters while offering new pathways for technology collaboration, export growth, and inclusive development across various sectors.

The India-EFTA Trade and Economic Partnership Agreement (TEPA) celebrates its second anniversary, marking significant progress in economic collaboration between India and European Free Trade Association (EFTA) nations. Since its implementation on October 1, 2025, the agreement has facilitated enhanced trade, investment, and technology exchanges.

According to the Ministry of Commerce & Industry, TEPA aligns India's economic interests with those of advanced European economies. Prime Minister Narendra Modi emphasized India's strategic network of Free Trade Agreements, stating that FTAs with 38 nations diversify market opportunities for Indian products while opening major economies' markets to Indian exports.

Union Minister Piyush Goyal highlighted TEPA's long-term purpose, noting its potential to generate USD 100 billion in investments over 15 years. The agreement integrates high-income markets, expanding the reach of Indian exporters and creating opportunities for technology transfer and joint ventures, particularly benefitting MSMEs and start-ups.

The agreement provides transformative access to high-income markets, with EFTA commitments covering 92.2% of tariff lines, affecting 99.6% of India's exports. India's commitments encompass 82.7% of tariff lines, representing 95.3% of EFTA exports. Tariff concessions on non-agricultural and processed agricultural products are notable highlights.

TEPA plays a crucial role in India's broader trade strategy, with the government targeting USD 2 trillion in combined merchandise and services exports by 2030. The agreement promotes industrial growth through investment in manufacturing, technology, and R&D, while advancing mutual recognition in professional services.

TEPA's inclusivity extends to women, youth entrepreneurs, and various sectors like agriculture and MSMEs. Indian States such as Maharashtra, Karnataka, Kerala, and the North-East stand to gain from better integration into global markets. This inclusive approach supports national economic ambitions and sustainable growth.

(With inputs from agencies.)