India-EFTA Trade Deal Going Live On October 1; To Generate 1 Million Jobs, Attract $100 Billion FDI
The pact, signed on March 10, 2024, includes EFTA member states Iceland, Liechtenstein, Norway, and Switzerland and is expected to be a major driver of foreign investment and bilateral trade.
India and the European Free Trade Association (EFTA) have signed a Trade and Economic Partnership Agreement (TEPA). Commerce Minister Piyush Goyal announced on Saturday that the trade pact will come into effect from October 1, 2025.
The pact, signed on March 10, 2024, includes EFTA member states Iceland, Liechtenstein, Norway, and Switzerland and is expected to be a major driver of foreign investment and bilateral trade, reported PTI.
Highlighting the significance of the agreement, Minister Goyal noted that a Dedicated India-EFTA Desk has now been established to ensure smooth rollout and effective coordination. The platform is designed to serve as a single-window facilitation mechanism for both public and private sector stakeholders, aiming to make it easier for EFTA-based investors to engage with Indian markets.
“This desk will act as a ‘single-window platform’ for both governments and private companies,” Goyal said, adding that it will streamline access for foreign firms to India's fast-expanding industries.
India-EFTA TEPA to come into effect from 1st October. pic.twitter.com/BE9QhFN7iU
— Piyush Goyal (@PiyushGoyal) July 19, 2025
$100 Billion FDI Expected And 1 Million Jobs
Under the TEPA framework, India aims to attract $100 billion in foreign direct investment (FDI) over a 15-year period. The target includes an initial $50 billion over the first decade, followed by an additional $50 billion in the subsequent five years. The agreement also lays out a goal of generating one million jobs in India, leveraging the anticipated uptick in investments and economic activity.
However, these targets are tied to a key economic assumption: that India sustains an average GDP growth of 9.5 per cent in dollar terms over the investment horizon. This estimate is in line with the country’s long-term growth trajectory.
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Expanding Economic Footprints on Both Sides
The agreement is among the most comprehensive trade pacts India has signed to date. It is expected to provide Indian exporters with greater access to high-value European markets, while also bringing in advanced technology, capital inflows, and employment opportunities.
From the perspective of EFTA member countries, the pact offers a strategic opening into one of the fastest-growing major economies in the world. With global trade dynamics evolving rapidly, the agreement enhances EFTA's presence in South Asia and enables deeper economic integration with India.
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