Union Commerce Minister Piyush Goyal called on Indian industries to fully use the India-EFTA Trade and Economic Partnership Agreement (TEPA). Signed on March 10, 2024, and effective from October 1, 2025, the pact promises big gains for trade and jobs. Speaking at a recent industry event in March 2026, Goyal stressed its potential amid global shifts.
The deal covers 14 chapters, including goods, services, investment, and sustainable development. EFTA nations—Switzerland, Norway, Iceland, and Liechtenstein—will cut tariffs on 99.6% of India’s exports, like textiles, pharma, and engineering goods. India offers duty relief on 95% of EFTA imports, protecting sensitive sectors like dairy and gold. A standout feature is EFTA’s $100 billion investment pledge over 15 years, aiming to create 1 million direct jobs in India, especially in manufacturing and services.
Goyal highlighted early wins: Bilateral trade hit $2.4 billion in FY25, up 10% from prior years. Exports to EFTA grew 12% in key areas like auto parts and chemicals. He urged firms to explore new markets, saying, “This pact opens doors—act fast to boost ‘Make in India’.” Challenges like non-tariff barriers remain, but Goyal promised government support via export incentives. The agreement boosts India’s global trade share, targeting $1 trillion exports by 2030. With EFTA’s tech expertise, sectors like renewables and EVs stand to gain. Industry leaders welcomed the push, eyeing joint ventures.
FAQs [Frequently Asked Questions]
1. What is the India-EFTA trade pact’s key investment promise?
EFTA commits $100 billion over 15 years to India, targeting 1 million direct jobs in manufacturing and services, as part of the TEPA signed in 2024.
2. Which sectors benefit most from tariff cuts?
India gains duty-free access for 99.6% exports like pharma, textiles, and engineering; EFTA gets relief on 95% imports, excluding sensitive agri-gold items.
3. When did the agreement start, and what’s early trade impact?
Effective October 1, 2025; FY25 bilateral trade rose to $2.4 billion, with India’s exports up 12% in autos and chemicals.
(*Image Source- Business News)