TEPA, effective October 1, boosts ‘Make in India’ by enhancing trade, innovation, investment, sustainability, and self-reliance
New Delhi
India’s new trade deal with four European countries under the India–EFTA Trade and Economic Partnership Agreement (TEPA) is expected to bring $100 billion in investments and create 10 lakh jobs over the next 15 years, according to government data. This is India’s first free trade agreement (FTA) with developed European nations — Iceland, Liechtenstein, Norway, and Switzerland.
The pact came into effect on October 1 and marks a major step in India’s global trade policy. It supports ‘Make in India’ and ‘Atmanirbhar Bharat’ by promoting manufacturing, innovation, and sustainable growth. TEPA includes 14 chapters covering trade in goods and services, intellectual property rights, sustainable development, investment promotion, and other key areas.
The agreement offers greater market access for Indian exports, especially in technology, healthcare, and digital services. It covers 92.2 percent of EFTA tariff lines, accounting for 99.6 percent of India’s exports, while India opens 82.7 percent of its lines, protecting vital sectors such as agriculture, dairy, and coal.
EFTA nations have pledged $50 billion in foreign direct investment during the first 10 years and another $50 billion over the next five years. These long-term investments will focus on manufacturing, research, and innovation.
To ease the process, a dedicated India–EFTA Desk set up in February 2025 helps investors in fields like renewable energy, life sciences, engineering, and digital transformation. Officials say the pact will deepen India–Europe ties, boost exports, and help create millions of skilled jobs while promoting sustainable and inclusive development.
BOX
TEPA at a glance
* $100 billion investments + 1 million jobs
* First FTA with four developed European countries
* Covers 14 chapters such as goods, services, IPR, sustainable development
* Supports ‘Make in India’ and ‘Atmanirbhar Bharat’
