India-EFTA TEPA to take effect on 1 October 2025
Why in the news
The India-EFTA Trade and Economic Partnership Agreement is set to become operational on 1 October 2025, more than a year after it was signed. It was concluded after 21 rounds of talks that began in 2008.
Key facts
- Effective date: 1 October 2025; signed on 10 March 2024.
- EFTA members: Iceland, Liechtenstein, Norway and Switzerland, none of which belongs to the European Union.
- Investment pledge: USD 100 billion over 15 years, split as USD 50 billion in the first ten years and USD 50 billion in the next five.
- Jobs: about 1 million expected.
| Item | EFTA offer | India offer |
|---|---|---|
| Tariff lines covered | 92.2% | 82.7% |
| Share of partner exports covered | 99.6% of India’s exports | 95.3% of EFTA exports |
About EFTA trade with India
India is EFTA’s fifth-largest trading partner. Two-way trade was about USD 24.4 billion in 2024-25, made up of roughly USD 1.96 billion of Indian exports and USD 22.45 billion of imports, leaving India with a large deficit. The pact aims to lift trade and investment and create jobs by cutting tariffs and non-tariff barriers, and to give service providers and investors predictable access.
Exam angle
- Remember the 1 October 2025 start and the 10 March 2024 signing date.
- Know the four EFTA members and that they are outside the EU.
- The USD 100 billion pledge and 1 million jobs are common numeric questions.