India-EFTA trade pact comes into force, set to unlock $100 bn investments and 1 million jobs

India-EFTA TEPA takes effect from October 1, paving way for $100 bn investments and deeper trade ties

The landmark Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) bloc, comprising Iceland, Liechtenstein, Norway and Switzerland, officially entered into force on October 1, 2025, according to the official joint statement.

Prosperity Summit marks the occasion

The entry into force was marked at the Prosperity Summit in New Delhi, hosted by Commerce and Industry Minister Piyush Goyal. Senior EFTA representatives, including Swiss State Secretary Helene Budliger Artieda and ambassadors from Iceland, Liechtenstein and Norway, joined the event. Business leaders from both sides were also present to explore co-production opportunities in precision manufacturing, clean technology, and services mobility.

Scale of the pact

Together, India and the EFTA States represent a combined GDP of about $5.4 trillion. India, the world’s fastest-growing large economy, and EFTA, a global leader in high-value goods and services trade, are positioning themselves as trusted partners in reshaping global supply chains.

The deal, signed in March 2024, aims to mobilise $100 billion of investments in India over the next 15 years and create one million direct jobs. A dedicated investment facilitation mechanism will track progress on these commitments.

What the agreement brings

The TEPA promises:

• Enhanced market access for goods and services
• Streamlined customs procedures to cut red tape
• Closer value-chain integration across sectors
• Regulatory dialogue and standards cooperation to ease trade barriers
• Boost to supply chain resilience for both sides