India Signs European Trade Deal Promising $100 Billion Investment and 1 Million Jobs
SDG 8: Decent Work & Economic Growth | SDG 17: Partnerships for the Goals
Institutions: Ministry of Commerce & Industry | Department of Commerce
The India–EFTA Trade and Economic Partnership Agreement (TEPA), signed in March 2024, officially came into force on 1 October 2025. The agreement links India with four high-income European countries—Switzerland, Norway, Iceland, and Liechtenstein—through one of India’s most ambitious trade frameworks to date. Under its terms, EFTA members will invest USD 100 billion in India over the next 15 years and generate 1 million direct jobs.
EFTA has eliminated duties on 92 percent of its tariff lines (covering 99.6 percent of India’s exports), while India will open 82.7 percent of its tariff lines (covering 95.3 percent of EFTA exports). Sensitive sectors like dairy, coal, and specific agricultural products remain protected. On services, TEPA allows greater professional mobility, digital trade, and mutual recognition in fields such as nursing, accountancy, and architecture.
This agreement blends traditional trade liberalisation with investment-led employment generation, setting a new model for India’s future trade pacts. It strengthens India’s economic integration with developed Europe, diversifies export markets, and anchors long-term capital inflows while safeguarding vulnerable domestic sectors. The inclusion of skill mobility and service-sector recognition underscores India’s bid to leverage its human-capital strengths globally.
What is the India–EFTA Trade Agreement? → It is India’s first free-trade deal with advanced European economies, combining market access, investment, and job-creation commitments in one legally binding framework.
Relevant Question for Policy Stakeholders:
What monitoring mechanism will ensure that EFTA’s USD 100 billion investment and job-creation commitments are met on schedule and equitably distributed across Indian regions?
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