In an period when world commerce alliances are being redrawn amid shifting provide chains and geopolitical recalibrations, India’s signing of the India–European Free Commerce Affiliation (EFTA) Commerce and Financial Partnership Settlement (TEPA) stands out as a strategic leap. It’s not merely one other commerce pact however an announcement of intent, signalling India’s confidence in partaking with superior economies on equal footing. By partnering with Switzerland, Norway, Iceland, and Liechtenstein, India has not solely expanded its financial geography but additionally redefined the contours of its commerce diplomacy with a $100 billion funding dedication and the promise of 1 million new jobs.
On the products entrance, it gives in depth tariff liberalisation, EFTA has dedicated to cowl 92.2 per cent of its tariff strains, accounting for 99.6 per cent of India’s exports, whereas India has prolonged concessions over 82.7 per cent of tariff strains, masking 95.3 per cent of EFTA’s exports. This steadiness ensures openness whereas defending delicate sectors reminiscent of dairy, coal, and choose agricultural merchandise.
Encompassing 14 chapters on items, providers, funding, mental property, and sustainable growth, TEPA displays India’s shift in the direction of a mature, strategic commerce coverage that blends openness with home resilience. Furthermore, the inclusion of mutual recognition {of professional} {qualifications} enhances India’s providers commerce potential, positioning the nation as a stronger and extra aggressive participant in Europe’s evolving commerce panorama.
Deepening positive factors
TEPA’s advantages are multidimensional, spanning agriculture, business, and high-technology sectors. For agriculture, India’s exports to EFTA, valued at $72.37 million in FY 2024-25 comprise guar gum, processed greens, basmati rice, pulses, fruits, and grapes. Tariff eliminations and reductions, particularly in Switzerland and Norway, which collectively account for over 99 per cent of India’s agri-trade with EFTA, are poised to reinforce competitiveness. Swiss tariffs on meals preparations, confectionery, and contemporary grapes, beforehand as excessive as 272 CHF per 100 kg, are being abolished, whereas Norway’s duty-free entry for rice, drinks, and processed meals opens new premium markets. Equally, Iceland’s elimination of tariffs (as much as 97 ISK/kg) on processed meals and sweets strengthens India’s processed meals exports.
The espresso and tea sectors additionally emerge as main gainers. With EFTA nations collectively importing $175 million value of espresso, almost 3 per cent of worldwide commerce, India’s zero-duty entry positions its shade-grown, hand-picked espresso for premium European markets. For tea, the common export realisation has already risen to $6.77 per kg in 2024-25, from $5.93 the earlier 12 months, reflecting quality-based differentiation and higher margins.
Marine merchandise, one other essential phase, profit from obligation exemptions as much as 13.16 per cent in Norway on fish and shrimp feed, tariff eliminations as much as 10 per cent in Iceland on frozen and preserved seafood, and 0 obligation in Switzerland on fish oils. These measures improve the associated fee competitiveness of India’s seafood exports whereas integrating them into sustainable aquaculture provide chains.
On the commercial entrance, the engineering sector, the place exports to EFTA reached $315 million in FY 2024-25, rising 18 per cent year-on-year, stands to achieve considerably. The pact opens markets for electrical equipment, copper merchandise, energy-efficient methods, and precision engineering items. Textiles, attire, leather-based, and footwear sectors profit from obligation stability and simplified requirements, whereas sports activities items and toys take pleasure in zero-duty entry alongside mutual recognition of conformity requirements.
The gems and jewelry sector, lengthy a key participant in India’s export portfolio, will see consolidated duty-free entry, significantly benefiting exporters of diamonds, gold, and colored gem stones. In chemical substances, plastics, and allied merchandise, EFTA has prolonged zero or lowered tariffs on 95 per cent of India’s exports, with potential progress from $49 million to $70 million. This contains alternatives in pet meals, ceramics, and glassware, enabling Indian companies to diversify into high-value European markets.
A partnership past commerce
The India-EFTA Commerce and Financial Partnership Settlement (TEPA) is a partnership with function, constructed on investment-led and sustainable progress moderately than simply tariff concessions. With a $100 billion funding dedication and a million direct jobs over 15 years, it bridges India’s expert human capital with Europe’s superior know-how, selling long-term industrial capability. The settlement advantages key sectors reminiscent of IT, enterprise providers, and training by way of provisions on digital supply, skilled mobility, and mental property cooperation, whereas safeguarding India’s autonomy in areas like generics and public well being. Equally, TEPA integrates sustainability into commerce by embedding environmental safeguards, social inclusivity, and simplified commerce guidelines, aligning with India’s broader growth and local weather objectives. It reduces compliance prices for exporters and promotes accountable, clear globalisation.
In conclusion, TEPA displays India’s financial maturity, balancing openness with safety, ambition with warning. It consolidates India’s picture as a trusted, innovation-driven commerce associate and provides EFTA nations entry to a secure, rising market. Greater than a commerce deal, TEPA is a blueprint for strategic belief and shared prosperity, marking a brand new part in India’s world financial engagement that’s balanced, inclusive, and future-ready.
The author is an Assistant Professor at Symbiosis Institute of Worldwide Enterprise (SIIB), Pune. Views are private
Revealed on October 21, 2025
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