India–EFTA trade pact targets $100 billion in investments, 10 lakh jobs over 15 years

New Delhi, Oct 11 (IANS) The India–EFTA Trade and Economic Partnership Agreement (TEPA) has established India’s first free trade agreement (FTA) with four developed European nations, with commitments of $100 billion in investments and the creation of 1 million direct jobs over the next 15 years, government data showed on Saturday.

The pact enhances market access for goods and services, strengthens intellectual property rights, and promotes sustainable and inclusive development, while advancing the objectives of ‘Make in India’ and ‘Atmanirbhar Bharat’.

The India–European Free Trade Association (EFTA) TEPA came into force on October 1, marking a defining moment in India’s external trade policy.

The agreement consists of 14 chapters, focusing on key areas such as market access for goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, services, intellectual property rights, trade and sustainable development, and other legal and horizontal provisions, according to the government.

EFTA covers 92.2 per cent of tariff lines (99.6 per cent of India’s exports), while India covers 82.7 per cent (95.3 per cent of EFTA’s exports), protecting key sectors like dairy, soya, coal, and agriculture.

The pact expands market access, drives manufacturing and innovation, and strengthens cooperation in technology and sustainability. Services exports gain through digital delivery, commercial presence, professional mobility, and Mutual Recognition Agreements (MRAs) in fields such as nursing, accountancy, and architecture.

The four EFTA states (Iceland, Liechtenstein, Norway and Switzerland) have pledged to increase foreign direct investment (FDI) in India by $50 billion within the first 10 years, followed by an additional $50 billion in the next five years.

Unlike portfolio inflows, these are long-term, capacity-building investments focused on manufacturing, innovation, and research. Over time, they are expected to generate one million direct jobs and forge deeper linkages between India’s skilled workforce and Europe’s technology ecosystems.

To streamline investment facilitation, a dedicated India–EFTA Desk, operational since February 2025, serves as a single-window platform for potential investors, focusing on renewable energy, life sciences, engineering, and digital transformation, while promoting joint ventures and SME collaborations.

With services contributing over 55 per cent to India’s Gross Value Added (GVA), TEPA offers a platform for next-generation trade in knowledge and digital services.

--IANS

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