India–EFTA Trade Pact Takes Effect Oct 1: $100 Billion Investment, 10 Lakh Jobs Tied To Deal

The India–European Free Trade Association Trade and Economic Partnership Agreement will officially take effect on Oct. 1, 2025, according to press release by Ministry of Commerce and Industry on Tuesday. Signed in March 2024, the deal is India’s first free trade agreement linking market access with long-term investment and job creation commitments.

Under the EFTA nations like Switzerland, Norway, Iceland, and Liechtenstein have pledged to channel $100 billion (Rs 8.88 lakh crore) in foreign direct investment into India over the next 15 years, generating one million direct jobs. A dedicated India–EFTA Desk has already been established to fast-track investments in sectors such as renewable energy, life sciences, engineering, and digital technologies.

The agreement provides unprecedented 100% tariff elimination on non-agricultural goods, along with concessions on processed food products. This will open premium markets in Switzerland and Norway to Indian exports such as rice, grapes, biscuits, coffee, marine products, textiles, chemicals, and engineering goods. Sectors like gems and jewellery, electronics, and sports goods are also expected to gain from reduced tariffs and simplified compliance.

In return, India has offered access to 82.7% of its tariff lines, covering 95% of EFTA exports, though it has protected sensitive sectors including dairy, coal, pharmaceuticals, and processed foods. Importantly, gold, which accounts for more than 80% of India’s imports from EFTA will remain unaffected by new concessions.

India secured improved access across over 100 sub-sectors, with EFTA offering commitments in information technology, business services, education, creative industries, and cultural services. The deal also opens doors for Mutual Recognition Agreements in professional fields such as nursing, chartered accountancy, and architecture, creating new mobility opportunities for Indian professionals.

Additionally, the agreement ensures greater certainty for temporary movement of skilled personnel, and facilitates digital delivery of services which are key wins for India’s IT and knowledge-based sectors.

Beyond trade, TEPA emphasises sustainable and inclusive development, with provisions for environmental protection, skills development, and technology transfer. India is expected to benefit from EFTA’s strengths in precision engineering, health sciences, and renewable energy, helping to boost competitiveness while advancing climate and development goals.

By providing Indian exporters with improved access to high-income European markets and cementing investment-driven growth, TEPA is seen as a “model FTA” that balances openness with protection of domestic interests. The pact also signals India’s deepening outreach to Europe, complementing its engagement with the EU and UK.