India-EFTA Free Trade Agreement To Come Into Force From October 1: Piyush Goyal
'All the four countries have ratified the FTA, lodged their documents with the repository in Norway, and from 1st October, the FTA will come into effect,' says commerce minister.
The long-awaited Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) will officially come into effect from October 1, 2025. The announcement was made by Commerce Minister Piyush Goyal on Saturday.
The EFTA comprises Iceland, Liechtenstein, Norway, and Switzerland.
'All the four countries have ratified the FTA, lodged their documents with the repository in Norway, and from 1st October, the FTA will come into effect," said Goyal, while speaking at an Assocham event on July 19, 2025.
The agreement, signed on March 10, 2024, is considered one of India's most comprehensive trade pacts and is expected to significantly deepen economic ties by unlocking substantial foreign direct investment and boosting trade across multiple sectors.
To ensure smoother implementation, a Dedicated India-EFTA Desk has been set up. This desk will facilitate trade, investment, and private sector partnerships between India and EFTA nations.
Goyal said, 'The desk will act as a single-window platform for both governments and private companies, easing entry for EFTA-based investors into India's booming sectors."
TEPA lays out an ambitious investment roadmap, targeting $50 billion in FDI over the first 10 years, followed by another $50 billion in the subsequent five years. The agreement also aims to generate one million jobs in India as a direct result of increased trade and capital inflows. However, the achievement of these targets is contingent on India maintaining an average GDP growth rate of 9.5 per cent in US dollar terms, which is broadly in line with its historical trend.
A free trade agreement (FTA) is a treaty between two or more countries to reduce or eliminate barriers to trade, such as import duties, quotas, or licensing rules. The goal is to promote smoother exchange of goods, services, and investments by offering easier market access. FTAs like TEPA often go beyond just tariff reduction and include long-term investment commitments, technology transfer provisions, and employment generation targets.
For India, the TEPA deal is expected to open premium European markets to Indian exporters, while also bringing in high-quality capital, advanced technology, and innovation. It is seen as a key step in strengthening India's position in global supply chains and attracting long-term strategic investments.
For EFTA, the agreement provides access to one of the fastest-growing large economies in the world, giving it a stronger presence in South Asia during a time of global trade realignments.
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