India and the European Free Trade Association have operationalised the India–EFTA Trade and Economic Partnership Agreement (TEPA) at the Prosperity Summit in New Delhi.

Key Features of TEPA 

• Investment Commitments:
  • First-ever FTA with binding legal commitments on investments and job creation.
  • EFTA has committed to facilitate USD 100 billion FDI (excluding portfolio investments) in India, expected to generate 1 million jobs over 15 years.
• Market Access for Goods:
  • EFTA offers  92.2% of its tariff lines, covering 99.6% of India’s exports, including full access for non-agricultural goods and concessions on processed agricultural products.
    • Example: Switzerland eliminated tariffs on fresh grapes (up to 272 CHF/100 kg), boosting Indian competitiveness.
  • India offers  82.7% tariff lines, covering 95.3% of EFTA exports; gold imports (major Swiss export) left untouched.
  • Balanced Partnership: Sensitive products such as dairy, soya, coal, and some agricultural goods excluded to protect domestic interests, while opening high-potential areas like pharmaceuticals, textiles, and marine exports.
• Services Sector:
  • India has offered 105 sub-sectors; secured commitments in 128 (Switzerland), 114 (Norway), 107 (Liechtenstein), and 110 (Iceland).
  • Gains in IT services, business services, education, audiovisual, personal and cultural services.
  • Includes commitments for digital delivery (Mode 1), commercial presence (Mode 3), and temporary mobility of professionals (Mode 4).
  • Scope for Mutual Recognition Agreements in professional services such as nursing, accountancy, architects.
• Intellectual Property Rights (IPR):
  • Commitments kept at TRIPS level.
  • India secured safeguards against evergreening of patents, protecting its generic medicine industry while meeting Switzerland’s high IPR standards.
• Sustainable and Inclusive Development:
  • TEPA emphasizes social progress, environmental protection, and transparency in trade procedures.
  • Focus on sustainable growth and inclusive prosperity, aligning with India’s Antyodaya philosophy of reaching the last person.

“Power of Five” Complementarities

• India: Scale, demand and skilled workforce.
• Switzerland: Precision manufacturing, finance, capital goods.
• Norway: Maritime competence, clean energy expertise.
• Iceland: Clean-tech and digital innovations.
• Liechtenstein: High-value manufacturing and engineering specialisation.

Economic and Strategic Significance

• Boost to Indian Exports: Access to EFTA markets will aid pharma, med-tech, engineering, textiles, marine products, and processed foods.
  • For instance: 95% tariff elimination; scope for exports in pharma intermediates, rubber, glassware, packaging products.
• Make in India and Atmanirbhar Bharat: Encourages domestic manufacturing in infrastructure, machinery, pharmaceuticals, chemicals, food processing, logistics, and financial services.
• Integration with EU Markets: Switzerland’s strong trade ties with the EU (40% of its services exports) provide India a gateway to Europe.
• Technology Access: Enables collaboration in precision engineering, renewable energy, health sciences, R&D, and advanced manufacturing.
• Employment Generation: Direct job creation for India’s youth, along with vocational and technical training opportunities.
• Global positioning: Reinforces India’s status as the fastest-growing large economy, while anchoring long-term cooperation with Europe.

Conclusion

By linking India’s scale and talent with EFTA’s innovation and financial strength, TEPA creates a stable framework for long-term Indo-European economic cooperation, supporting Make in India and  Atmanirbhar Bharat.

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