India-EFTA FTA pact to take effect from October 1 : Piyush Goyal

NEW DELHI : Union  Commerce Minister Shri Piyush Goyal announced that, the long-awaited Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, will officially come into effect on October 1, 2025 on Saturday.

The landmark pact, signed on March 10, 2024, is expected to unlock massive foreign direct investment (FDI) and deepen trade and economic cooperation across several sectors. To facilitate smoother implementation, a Dedicated India-EFTA Desk has been launched to promote trade, investment, and business partnerships. This is in line with TEPA’s commitment to attract $100 billion in foreign direct investment (FDI) into India over the next 15 years.

Minister 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.

The deal includes an ambitious investment roadmap :

$50 billion in FDI within the first 10 years
An additional $50 billion over the next 5 years
Generation of 1 million jobs in India as a direct result of increased investment and trade

However, the success of these targets depends on India maintaining an average GDP growth rate of 9.5% in USD terms, which aligns with its historical growth trend.

What it means for India

TEPA marks one of India’s most comprehensive trade pacts and is expected to open up premium European markets for Indian exporters while bringing in capital, innovation, and jobs.

For EFTA, it provides access to one of the world’s fastest-growing major economies, strengthening its footprint in South Asia amid global trade realignments.