By Ira Deshpande
India has made notable progress with the India-EFTA Trade and Economic Partnership Agreement, effective on October 1, 2025, between Switzerland, Norway, Iceland, and Liechtenstein. A trade agreement typically focuses on reducing tariffs, but this one involves not only reducing tariffs but also committing to investments and jobs. Over the next 15 years, TEPA could generate $100 billion in investment and add over 1 million jobs.
This agreement could help India grow from a $4 trillion today to a $20 trillion economy in due course. Foreign investment is a catalyst for that growth. TEPA brings not only capital, but also technology, joint ventures, and access to better markets around the world.
Currently, India exports only $2 billion worth of goods to the countries, while imports amount to $22 billion. TEPA improves access for Indian exporters moving forward into the European markets. Based on TEPA, agriculture, processed food, machinery, aluminum, and copper products are likely to be the biggest winners. The agreement will also allow Indian professionals, like nurses and chartered accountants, to have easier access to working in EFTA countries.
The agreement strengthens India’s relationship with Europe as well, as Switzerland, in particular, acts as a connector to the European Union. This could lead to other business opportunities and could even provide a framework for more bilateral trade arrangements.
In conclusion, the India ‑ EFTA agreement is not just about trade. It’s not just about the jobs and having connections with the countries, but also an opportunity for India to enhance its potential, competitiveness and progress.