In a historic step for India’s trade policy, the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, came into effect on October 1. This marks India’s first free trade agreement (FTA) with the four developed European nations of Iceland, Liechtenstein, Norway, and Switzerland, heralding a new era of economic collaboration.

The agreement, described as one of India’s most ambitious trade pacts, commits EFTA nations to channel $100 billion in foreign direct investment (FDI) into India over the next 15 years, alongside creating one million direct jobs. This binding pledge, a first in any Indian FTA, underscores the deal’s focus on long-term, capacity-building investments in manufacturing, innovation, and research.

The TEPA, c

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