TEPA Operationalised, One Million Jobs Targeted in India
India and EFTA Nations Begin Historic Economic Partnership
New Delhi: India formally entered a new phase of economic engagement with Europe as the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) came into force today. Signed on March 10, 2024, in New Delhi, the agreement sets an ambitious investment target of USD 100 billion over fifteen years and aims to generate one million direct jobs in India, while providing wider market access for goods and services across Switzerland, Norway, Iceland, and Liechtenstein. Analysts describe the agreement as a landmark in India’s trade diplomacy, combining economic scale, technological cooperation, regulatory alignment, and structured investment facilitation to foster sustainable and balanced growth.
The operationalisation of TEPA was marked by the high-level Prosperity Summit in New Delhi, hosted by Piyush Goyal, Minister of Commerce and Industry of India. EFTA was represented by Helene Budliger Artieda, Swiss State Secretary at the State Secretariat for Economic Affairs; Ragnar Kristjánsson, Director General of External Trade and Economic Affairs at the Icelandic Ministry for Foreign Affairs; Christine Lingg, Deputy Director of the Office for Foreign Affairs of Liechtenstein; May-Elin Stener, Ambassador of Norway to India; and Markus Schlagenhof, Deputy Secretary-General of the European Free Trade Association. The summit also brought together business representatives from all parties, including prominent trade and industry bodies such as the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), the Associated Chambers of Commerce and Industry of India (ASSOCHAM), and Invest India, the national investment promotion and facilitation agency. These organisations played a key role in mobilising industry support, building confidence in the agreement, and facilitating partnerships across sectors.
India, the world’s fastest-growing large economy and on course to become the third-largest globally, and the EFTA States, collectively leaders in both merchandise and services trade, together represent a combined gross domestic product of approximately USD 5.4 trillion. The agreement is intended to strengthen value-chain integration, expand total trade, and deliver sustainable outcomes across goods, services, and investment. Analysts note that TEPA’s operationalisation will contribute to more resilient supply chains, higher trade and investment flows, expanded employment opportunities, and greater participation of micro, small, and medium enterprises in international markets.
Commerce and Industry Minister Piyush Goyal described TEPA as a “trusted partnership between friends” and highlighted its pioneering nature as the first trade pact to include a firm investment commitment, ensuring balanced benefits between partners. He observed that, although the combined population of the EFTA countries is smaller than Mumbai city alone, the region’s financial resources, innovation capacity, and technological expertise provide significant opportunities for collaboration. Minister Goyal emphasised the auspicious timing of the agreement, coinciding with Vijaya Dashami, symbolising clarity, prosperity, and stability amidst global trade uncertainty.
The agreement is expected to unlock opportunities across multiple sectors, including life sciences, clean energy, precision engineering, food processing, technology, artificial intelligence, accountancy, nursing, education, audio-visual services, culture, tourism, geothermal energy, shipbuilding, container manufacturing, advanced manufacturing, and research and development. India’s advantages in scale, cost competitiveness, and skilled human resources complement EFTA’s strengths in precision manufacturing, finance, maritime expertise, clean technologies, and high-value engineering. Minister Goyal highlighted India’s competitive cost structures, noting that data costs in the country are only 3% of those in the United States and less than 10% of the global average. He also pointed to the presence of nearly 2,500 global capability centres supporting Fortune 500 companies, as well as the legacy of Swiss firms such as ABB and Nestlé, which have leveraged India as both a market and a hub for global operations.
Swiss State Secretary Helene Budliger Artieda described TEPA as “more than a legal document” and a “win-win partnership,” noting that the strong presence of Swiss and other EFTA companies at the summit reflected confidence in India’s economic potential. Commerce Secretary Rajesh Agrawal highlighted that TEPA signals a collective commitment to free and fair trade and marks the beginning of a new era of shared growth, innovation, and prosperity. He further noted that the investment commitments under TEPA reflect global confidence in India’s growth trajectory, as the country emerges as the world’s fourth-largest economy and is on course to become the third.
Implementation of the agreement will be guided by detailed sector roadmaps, with a focus on deepening exports in engineering, pharmaceuticals, med-tech, food processing, textiles, apparel, and marine sectors. Micro, small, and medium enterprises will benefit from onboarding programs, quality and sustainability training modules, and matchmaking support facilitated by trade bodies such as the Confederation of Indian Industry, the Federation of Indian Chambers of Commerce and Industry, the Associated Chambers of Commerce and Industry of India, and Invest India. Logistical enhancements, including reduced port dwell times and compressed transit durations, will be prioritised. Both parties will monitor free trade agreement utilisation, investment expansion, and services outcomes to ensure tangible results.
TEPA also aims to enhance market access and mobility for Indian farmers, entrepreneurs, and services exporters. Farmers and agri-marine exporters are expected to gain tariff advantages and premium-market positioning for speciality coffees, marine products, and selected fresh and processed foods. Micro, small, and medium enterprises will benefit from standards cooperation, reduced duplicative testing and compliance costs, and buyer–supplier matchmaking support. Services exporters will gain clearer channels for digital delivery, commercial presence, and professional mobility, with pathways for mutual recognition agreements.
The agreement provides for an investment facilitation mechanism to monitor delivery of commitments, ensuring that the USD 100 billion investment objective over fifteen years is met alongside the creation of one million direct jobs in India. Analysts note that TEPA also supports the development of resilient supply chains, increases trade and investment flows, and contributes to long-term economic growth, while establishing a predictable and stable framework for investors and businesses.
TEPA leverages the “Power of Five,” combining India’s scale, demand, and skilled talent with Switzerland’s precision manufacturing and financial services, Norway’s maritime and clean energy expertise, Iceland’s niche clean technologies and digital innovation, and Liechtenstein’s high-value manufacturing and specialised engineering. Over the next two to three decades, the partnership is expected to compound trade, investment, and technology flows, establishing India and the EFTA States as trusted partners in the global economic order.
The Prosperity Summit also provided a platform for multiple investment announcements by EFTA companies, reflecting immediate confidence in the operationalisation of TEPA. Analysts note that beyond tariffs and investment pledges, the agreement establishes a framework for sustainable growth, inclusive economic benefits, and stronger integration with global markets. It is seen as a results-driven, balanced, and long-term partnership, designed to link India’s domestic growth momentum with European markets, facilitate sectoral collaboration, enable micro, small, and medium enterprise (MSME) engagement, and provide predictable and transparent channels for services and professional mobility.
In summary, TEPA represents a multi-sector, multi-dimensional framework connecting India’s growth trajectory with the EFTA States’ technological and financial capabilities. The agreement aims to create high-quality jobs, enhance supply chains, expand trade and investment, and foster inclusive and sustainable economic development for decades to come.
– global bihari bureau
