India will implement its landmark free trade agreement with the European Free Trade Association (EFTA) from October 1, 2025, Commerce and Industry Minister Piyush Goyal confirmed on Saturday.
This agreement, officially known as the Trade and Economic Partnership Agreement (TEPA), was signed between India and EFTA nations—Switzerland, Norway, Iceland, and Liechtenstein—on March 10, 2024.
The implementation is expected to boost trade, investment, and economic growth between India and the four-nation bloc.
100 Billion Dollar Investment Commitment from EFTA
As part of the India-EFTA trade pact, EFTA nations have committed to invest $100 billion over the next 15 years in India.
This clause was crucial in sealing the deal. Furthermore, as India sought long-term investment assurances in exchange for market access.
According to Piyush Goyal, this investment will span multiple sectors, including manufacturing, infrastructure, and green energy.
He called the deal a “watershed moment” in India’s foreign trade strategy.
Tariff Relief on Key Imports Like Gold and Swiss Watches
India has agreed to eliminate or reduce tariffs on 82.7% of its tariff lines, which cover 95.3% of EFTA’s total exports to India.
A significant portion of these imports includes gold, which accounts for over 80% of total imports from EFTA nations. Hence, are particularly from Switzerland.
The trade pact is also set to benefit Indian consumers by reducing costs on luxury and premium items such as:
- Swiss watches
- Chocolates
- Cut and polished diamonds
These products will now come with lower or zero customs duties, making them more affordable in the Indian market.
More on tariff structure details can be found on the Commerce Ministry portal.
India’s Exports to EFTA Could Get a Major Boost
While India has granted substantial tariff concessions, the EFTA countries will also eliminate duties on Indian exports, opening up new opportunities for Indian sectors like:
- Pharmaceuticals
- Textiles and garments
- Engineering goods
- IT and digital services
This is expected to help small and medium enterprises (SMEs) in India expand their reach in European markets.
With EFTA being a high-income market, Indian exporters could benefit from increased demand and better profit margins.
TEPA Could Encourage More FDI and Job Creation
The India-EFTA pact goes beyond trade and focuses on economic cooperation, especially in foreign direct investment (FDI).
Goyal said the $100 billion commitment is tied to India’s ability to maintain a stable and investor-friendly ecosystem.
This could translate into millions of new jobs, increased technology transfer, and stronger infrastructure development in Tier 2 and Tier 3 cities.
Goyal also emphasized that the pact includes provisions for sustainable development, IP protection, and digital trade, in line with India’s evolving economic priorities.
Strategic Significance Amid Global Trade Uncertainty
The timing of the India-EFTA trade pact is significant, especially as global trade patterns shift due to geopolitical tensions and supply chain realignments.
Experts say this agreement gives India a chance to:
- Diversify its trade partners
- Reduce dependency on China
- Strengthen its voice in global trade forums
It also aligns with India’s recent push for “Make in India” and “Atmanirbhar Bharat”, by ensuring global capital flows into domestic industries.
Future Trade Agreements in the Pipeline
India is currently negotiating other trade agreements, including with the UK, EU, and Gulf nations. The successful implementation of the India-EFTA deal will set a strong precedent for future negotiations.
Piyush Goyal expressed confidence that more countries will be keen to partner with India as it showcases economic stability and openness.
A Transformational Step for India’s Trade Agenda
The India-EFTA trade pact is not just about tariff reductions—it represents India’s strategic shift toward becoming a global trade powerhouse.
With a $100 billion investment promise, wider market access, and lower tariffs on high-value goods, the agreement could reshape India’s economic landscape.
As the October 1 implementation date approaches, industries, investors, and consumers alike will be watching closely.
Stay updated on developments related to trade policies on Invest India, the government’s official investment facilitation portal.