India–EFTA TEPA (Trade and Economic Partnership Agreement)

India–EFTA TEPA (Trade and Economic Partnership Agreement)

📅 Effective from: October 1, 2025

📝 Signed on: March 10, 2024

What is EFTA?

• European Free Trade Association (EFTA):
  A four-nation European bloc comprising:

  • Switzerland

  • Iceland

  • Norway

  • Liechtenstein

• Not part of EU, but closely integrated via economic cooperation.

• EFTA is an inter-governmental organization established in 1960 to promote free trade and economic integration for the benefit of its four Member States.

• Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway.

Key Features of India–EFTA TEPA:

1. First FTA with developed countries for India.

2. Investment Commitment:

   • $100 billion in 15 years (1st time legally committed in any Indian FTA).

   • 1 million direct jobs expected in India.

   • $50 bn in first 10 years + another $50 bn in next 5 years.

3. Market Access:

   • India offers 82.7% of tariff lines covering 95.3% of EFTA exports (80% = gold).

   • EFTA offers 92.2% of tariff lines, covering 99.6% of Indian exports.

   • India retains sensitive sectors (dairy, soya, coal, key agri items) in the exclusion list.

4. Goods Access:

   • Swiss products like watches, chocolates, biscuits, clocks to become cheaper over 10 years as duties are phased out.

5. Services Sector:

   • India offered 105 sub-sectors; got commitments from:

     • Switzerland (128), Norway (114), Liechtenstein (107), Iceland (110).

   • Boost to:

     • IT, Legal, Audio-visual, Education, Accounting, R&D etc.

   • Includes provisions for digital delivery (Mode 1), commercial presence (Mode 3), and temporary movement of professionals (Mode 4).

6. IPR Provisions:

   • Commitments are at TRIPS level.

   • Safeguards for generic medicines and against patent evergreening.

7. Sustainability:

   • Commitments to social development, environmental protection, inclusive growth.

8. Mutual Recognition Agreements (MRAs):

   • For professional services: Nursing, Chartered Accountants, Architects.

9. Strategic Access:

   • Switzerland can be a base for Indian firms to enter the EU market (as over 40% of Swiss services exports go to EU).

10. Support for Make in India:

    • Boost to domestic manufacturing in:

      • Pharmaceuticals, Precision Engineering, Chemicals, Logistics, Renewable Energy, R&D.

UPSC Prelims Pointers: