India-EFTA Free Trade Pact to Come Into Force from October 1, 2025: Piyush Goyal

TEPA aims to unlock $100 billion FDI, create 1 million jobs, and open trade across pharma, fintech, agritech, and clean energy sectors

The India-EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, will officially take effect from October 1, 2025, Commerce Minister Piyush Goyal confirmed on Saturday. This historic free trade pact between India and the European Free Trade Association (EFTA)—comprising Iceland, Liechtenstein, Norway, and Switzerland—is expected to transform India’s investment and export landscape by enabling greater FDI inflows, job creation, and technology partnerships across high-growth sectors.

• TEPA Implementation Date: October 1, 2025

• Signed On: March 10, 2024

• Participating EFTA Nations: Iceland, Liechtenstein, Norway, Switzerland

• Projected Job Creation: 1 million jobs

• FDI Target: $100 billion in 15 years

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Dedicated EFTA Desk to Accelerate Bilateral Trade & Investment

To streamline the implementation of the agreement, a Dedicated India-EFTA Desk has been established. This platform will serve as a single-window mechanism to coordinate trade, investment, and business collaborations. Minister Goyal noted that the desk will facilitate easier market access for EFTA investors seeking entry into India’s fast-growing sectors like clean energy, agritech, financial technology, and pharmaceuticals.

• Desk Objective: Promote bilateral investments and partnerships

• Desk Role: Government and private sector facilitation

• Target Sectors: Pharma, Fintech, Agritech, Clean Energy

Investment Roadmap: $50 Billion in 10 Years, $50 Billion More by Year 15

The agreement outlines an ambitious FDI roadmap, with a commitment to attract $50 billion in foreign direct investment in the first 10 years, followed by another $50 billion over the subsequent five years. In return, EFTA nations gain access to one of the world’s most dynamic economies, while Indian exporters benefit from preferential access to premium European markets.

• FDI Phase 1 (First 10 Years): $50 billion

• FDI Phase 2 (Next 5 Years): $50 billion

• Key Mutual Benefits: Market access, capital inflow, export expansion

Growth Targets Key to Pact’s Success

The success of TEPA hinges on India maintaining an average GDP growth rate of 9.5% (in USD terms) over the next decade and a half. Analysts believe this is achievable given India’s long-term economic trajectory, but it will require continued reforms, robust infrastructure development, and private sector participation.

• Required GDP Growth (USD Terms): 9.5% average over 15 years

• Risks: Global trade volatility, domestic economic challenges

• Support Measures: Infrastructure push, regulatory reforms

India-EFTA Pact Seen as a Strategic Milestone

With this agreement, India has taken a major step toward redefining its global trade positioning, aligning with like-minded partners amid shifting global trade alliances. For EFTA, the deal offers strategic access to the Indian market, while for India, it brings FDI, jobs, innovation, and new export frontiers.

• Strategic Outcome for India: Access to high-value EU markets

• Strategic Outcome for EFTA: Deeper South Asia engagement

• Global Context: Trade diversification amid geopolitical realignments

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