India strengthens global trade ties as EFTA agreement opens new markets

The implementation process of the Trade and Economic Partnership Agreement (TEPA) between India and the member states of the European Free Trade Association (EFTA), Iceland, Liechtenstein, Norway and Switzerland began two years after India signed the agreement. The partnership officially started on October 1, 2025 and aims to strengthen trade, investment, services and technology cooperation between India and these European nations.

India expands global network of free trade agreements

Prime Minister Narendra Modi said India has built a strong network of Free Trade Agreements in recent years. India now has FTAs with 38 countries, which is an important milestone in the country’s trade history. He also noted that these agreements help Indian manufacturers and businesses sell their products in different global markets, according to an official release.

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Tariff reductions boost trade opportunities

He also explained that such agreements enable countries to reduce or remove tariffs on various goods. The trade agreements with Australia and the United Arab Emirates have already resulted in increased merchandise trade between the two countries. The agreements have enabled Indian service professionals to establish international work connections.

Union Commerce and Industry Minister Piyush Goyal said the India-EFTA agreement has a long-term economic goal as the program will enable Indian exporters to access wealthy European markets. The agreement requires an investment of $100 billion over 15 years, approximately one million direct job opportunities in India.

Indian companies can obtain advanced machinery, high-quality materials and technology partnerships from EFTA countries through the agreement.

Tariff concessions and sector protection

The agreement requires EFTA countries to reduce tariffs on more than 92 per cent of their tariff lines, allowing India to export 99.6 per cent of its products. India will set tariff reductions for 82.7 per cent of its tariff lines, applying to 95.3 per cent of EFTA products. Certain essential industries receive protection from the dairy and soya, coal and specific agricultural product sectors.

The agreement will deliver advantages to multiple Indian sectors, including pharmaceuticals, textiles, engineering goods, chemicals, processed food and marine products. The new agreement will give India better access to industrial equipment and components, assisting businesses in improving their manufacturing processes and global market competition.

TEPA provides support to India for achieving its international trade objectives. The government plans to reach merchandise exports of 1 trillion dollars and services exports of 1 trillion dollars by the year 2030. Advanced economies with which India establishes strong trade relations will enable India to achieve its export objectives.

New opportunities for services and Indian producers

The agreement enables companies to work together in IT services, professional services and other knowledge-based sectors. The solution enables professional qualifications in nursing, chartered accountancy and architecture to have international recognition.

Farmers, fishers, small businesses, start-ups, women and young entrepreneurs will gain advantages through the agreement as it enables them to access Europe’s top-tier markets. Indian states will receive new export possibilities for their products, including Maharashtra grapes and Karnataka coffee, Kerala spices and North-East horticulture.

The India-EFTA TEPA agreement will strengthen trade relations between India and EFTA countries while attracting foreign investments and promoting economic development in India for the upcoming years.