India–EFTA Trade Pact Comes into Force, Rs 8.5 Lakh Crore Investment and 1 Million Jobs on the Horizon

New Delhi (The Uttam Hindu): India has taken a major step in strengthening its trade ties with Europe by implementing the India–EFTA Trade and Economic Partnership Agreement (TEPA), effective 1 October 2025. The pact marks India’s first free trade agreement with four developed European nations – Switzerland, Norway, Iceland, and Liechtenstein.

TEPA is set to unlock USD 100 billion in investments and create 1 million direct jobs in India over the next 15 years. The agreement covers over 90% of tariff lines for both India and EFTA, while safeguarding sensitive sectors like dairy, soya, coal, and pharmaceuticals.

The pact enhances market access for goods and services, including IT, business services, education, and professional sectors such as nursing, accountancy, and architecture. Key provisions also focus on intellectual property rights, innovation, sustainability, and technology cooperation.

By providing long-term investment commitments and preferential market access, TEPA aims to boost manufacturing, exports, and employment, while supporting India’s Make in India and Atmanirbhar Bharat initiatives.

This strategic agreement positions India as a reliable partner for high-income European markets and represents a forward-looking milestone in India–Europe economic relations.