India–EFTA TEPA explainer: $100 billion investment and 1 million jobs pledge, in force since 1 October 2025
A PIB explainer on 11 October 2025 said the India–EFTA Trade and Economic Partnership Agreement, signed on 10 March 2024 and in force since 1 October 2025, is the first Indian FTA with binding commitments on investment ($100 billion) and jobs (1 million) over 15 years.
Summary
A PIB explainer published on 11 October 2025 described the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), signed in New Delhi on 10 March 2024, which came into force on 1 October 2025. EFTA comprises Iceland, Liechtenstein, Norway and Switzerland; it was set up in 1960. TEPA is India's first FTA with four developed European nations and the first Indian FTA with binding investment and job commitments: under Article 7.1, EFTA states pledged to raise FDI in India by $50 billion in the first 10 years and another $50 billion in the next five, with 1 million direct jobs expected. EFTA gives concessions on 92.2% of its tariff lines (99.6% of India's exports), while India offers 82.7% of its lines (95.3% of EFTA's exports), excluding sensitive sectors such as dairy, soya, coal and pharmaceuticals. The agreement has 14 chapters, and an India–EFTA Desk has operated since February 2025.
Key facts
- Signed / in force
- 10 Mar 2024, New Delhi / 1 Oct 2025
- EFTA members
- Iceland, Liechtenstein, Norway, Switzerland (est. 1960)
- Investment pledge
- $50 bn in 10 years + $50 bn in next 5 (Art. 7.1)
- Jobs
- 1 million direct jobs
- Tariff offers
- EFTA 92.2% lines (99.6% of India's exports); India 82.7% (95.3% of EFTA's exports)
- Structure
- 14 chapters; India–EFTA Desk since Feb 2025
Practice MCQs 2 questions
On which date did the India–EFTA Trade and Economic Partnership Agreement (TEPA) come into force?
Show answer
Correct answer: D — 1 October 2025
PIB: TEPA was signed on 10 March 2024 in New Delhi and came into force on 1 October 2025.
Consider the following statements about the India–EFTA TEPA: 1. EFTA states have pledged to increase FDI in India by $50 billion in the first 10 years and by a further $50 billion in the next five years. 2. India has offered tariff concessions on 92.2% of its tariff lines. Which of the statements given above is/are correct?
Show answer
Correct answer: A — 1 only
Only 1 is correct. PIB: under Article 7.1, EFTA pledged $50 billion FDI in the first 10 years and another $50 billion in the next five; it is EFTA that offers concessions on 92.2% of tariff lines — India offers 82.7%.