India–EFTA Trade and Economic Partnership Agreement comes into force
The India–EFTA Trade and Economic Partnership Agreement (TEPA) came into force on 1 October 2025, with an objective of USD 100 billion investment and one million direct jobs in India over 15 years.
Summary
The India–EFTA Trade and Economic Partnership Agreement (TEPA) came into force on 1 October 2025, marked at a Prosperity Summit in New Delhi. The European Free Trade Association (EFTA) comprises Switzerland, Norway, Iceland and Liechtenstein. TEPA includes an objective of USD 100 billion of investment over 15 years and the facilitation of one million direct jobs in India, along with wider access for goods and services. Commerce Minister Piyush Goyal called it the first trade agreement to include a firm investment commitment. Implementation will focus on sector roadmaps in engineering, pharma and med-tech, food processing, textiles and marine products.
Key facts
- Agreement
- India–EFTA TEPA
- In force
- 1 Oct 2025 (Prosperity Summit, New Delhi)
- EFTA members
- Switzerland, Norway, Iceland, Liechtenstein
- Investment objective
- USD 100 billion over 15 years
- Jobs
- 1 million direct jobs in India
- First
- Trade pact with a firm investment commitment
Practice MCQs 3 questions
What investment objective is included in the India–EFTA TEPA, which came into force on 1 October 2025?
Show answer
Correct answer: A — USD 100 billion over 15 years
TEPA includes an investment objective of USD 100 billion over 15 years and one million direct jobs in India.
Which of the following countries is NOT a member of the European Free Trade Association (EFTA)?
Show answer
Correct answer: C — Denmark
EFTA comprises Switzerland, Norway, Iceland and Liechtenstein; Denmark is an EU member.
Consider the following statements about the India–EFTA TEPA: 1. Austria is one of the four EFTA countries party to the agreement. 2. The agreement entered into force on 1 January 2026. Which of the above is/are correct?
Show answer
Correct answer: D — Neither 1 nor 2
Both are wrong: the four EFTA countries are Switzerland, Norway, Iceland and Liechtenstein, and TEPA entered into force on 1 October 2025.