India-European Free Trade Association Trade and Economic Partnership Agreement (TEPA)

Context: India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) will come into effect on 1st October 2025.

It is India’s first FTA with four developed European nations, promising $100 bn investments and 1 million jobs in 15 years.

About India-European Free Trade Association Trade and Economic Partnership Agreement (TEPA):

What it is?

A comprehensive Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA).
First Indian FTA linking trade, investment, and job creation commitments.

Signed in:

Nations Involved (EFTA members): Switzerland, Norway, Iceland, Liechtenstein.

Aim:

Attract $100 bn FDI in 15 years and generate 1 million direct jobs.
Expand market access for Indian goods and services.
Promote sustainable development, skills, and technology transfer.

Key Features of TEPA:

Investment & Employment:
- $100 bn FDI commitment from EFTA in 15 years.
- Creation of 1 million direct jobs in India’s manufacturing & services.
Market Access for Goods: EFTA offers zero-duty access on 92.2% tariff lines (99.6% of India’s exports).
Services & Mobility:
- Commitments in 100+ sub-sectors (IT, education, audio-visual, business services).
- Mutual Recognition Agreements (MRAs) in nursing, architecture, chartered accountancy.
- Facilitates Mode 1 (digital delivery), Mode 3 (commercial presence), Mode 4 (personnel mobility).
Intellectual Property Rights:
- TRIPS+ standard with safeguards for generic medicines.
- Prevents patent evergreening while protecting innovation.
Sustainable Development:
- Emphasis on green growth, social inclusion, environmental protection.
- Encourages technology collaboration in renewable energy, precision engineering, and health sciences.