TEPA Outcomes Reaffirmed as India Prepares EU FTA Talks
Goyal, Monauni Lead Talks to Boost TEPA Implementation
Vaduz/New Delhi: India and Liechtenstein today reaffirmed commitments under the India–European Free Trade Association Trade and Economic Partnership Agreement (TEPA), focusing on trade, investment and manufacturing partnerships, as well as supply-chain resilience amid global economic uncertainty. Union Commerce Minister Piyush Goyal led the Indian delegation, while Deputy Prime Minister and Minister of Foreign Affairs, Environment and Culture Sabine Monauni represented Liechtenstein.
The deliberations emphasised translating TEPA into measurable economic outcomes, including expanded trade flows, long-term investment partnerships and deeper manufacturing collaboration. Officials underlined that TEPA represents a shift toward a higher-quality economic relationship, signalling the improving quality of Indian products, the expanding and diversified range of exports, and the steady strengthening of domestic manufacturing capabilities under the “Make in India” and “Make for the World” initiatives. It is India’s first free trade agreement with a developed bloc comprising Iceland, Liechtenstein, Norway and Switzerland, and reflects a combination of scale, competitiveness and reliability for global markets, according to the Indian side.
A central outcome of today’s discussions was the reaffirmation of TEPA’s agreed ambition to facilitate USD 100 billion in investments into India and support the creation of one million direct jobs. Market access commitments were reviewed comprehensively: the European Free Trade Association (EFTA)’s offer covers 100 per cent of non-agricultural products, along with tariff concessions on processed agricultural products. India’s offer covers 82.7 per cent of tariff lines, accounting for 95.3 per cent of EFTA exports, while sensitive sectors such as pharmaceuticals, medical devices, processed food, dairy, soya and coal remain protected. Over 80 per cent of imports from EFTA consist of gold, with no change in effective duty. Sensitivities related to PLI schemes in pharma, medical devices and processed food have been taken into account in the negotiations.
India presented itself as a stable and scalable base for long-term partnership, highlighting its position as the world’s fourth-largest economy with an estimated GDP of USD 4.13 trillion in 2025. The discussions drew attention to India’s reform momentum, large and expanding consumer market, deepening industrial base, and sustained focus on ease of doing business, digitisation and infrastructure-led competitiveness.
Both sides exchanged views on the global business environment, noting that supply chains face disruptions, uncertainties and sharper volatility. Officials underlined that India’s scale, talent pool and manufacturing depth could complement Liechtenstein’s specialised industrial capabilities, high-value innovation and financial expertise, enabling more resilient value chains and greater predictability for investors and enterprises.
Industry-level engagements, including interactions at Hilti AG, emphasised strengthening industry-to-industry partnerships, higher value addition, enhanced supplier linkages, including MSMEs, and an expanded role for India-based production in global operations. Indian officials invited Liechtenstein companies to use TEPA as a platform to expand their India presence, build manufacturing and innovation partnerships, and participate in India’s growing opportunities across sectors.
The discussions stressed the objective of creating real outcomes for businesses, MSMEs, farmers, fishermen and communities, highlighting TEPA as a means to deliver inclusive benefits while supporting broader economic integration. Officials noted that India looks forward to welcoming more Liechtenstein and EFTA enterprises to India, translating TEPA into stronger investments, deeper technology partnerships and a larger Indian footprint in global trade and investment flows.
Today’s deliberations followed a series of official engagements, including a courtesy call on H.S.H. Hereditary Prince Alois von und zu Liechtenstein, meetings with Prime Minister Brigitte Haas and Deputy Prime Minister Monauni, an interview with ORF, a luncheon hosted by the Deputy Prime Minister, and discussions with business leaders.
During the meetings, Goyal recalled Prime Minister Narendra Modi’s emphasis on India’s constructive role in the global economy, quoting the Prime Minister: “The world is seeing India with a ray of hope amidst uncertainty.” He noted that this sentiment resonates with India’s approach to partnerships that create real outcomes for businesses, MSMEs, farmers, fishermen and communities.
The deliberations concluded with calls to intensify India–Liechtenstein and wider India–EFTA engagement through business dialogues, delegations, and greater participation of EFTA companies in trade and investment events in India, aiming to translate TEPA into stronger investment flows, deeper technology partnerships, and a larger Indian footprint in global trade and investment networks.
Parallel to the outcomes achieved in Liechtenstein, India is preparing for high-level ministerial talks in Brussels on January 8–9 to advance the India–European Union Free Trade Agreement (FTA). The negotiations, re-launched in June 2022 after a hiatus of over nine years, have since completed 14 rounds of intensive discussions and multiple ministerial-level dialogues, the latest in December 2025. Officials describe the ongoing negotiations as a historic juncture in India–EU economic relations.
The European Union remains India’s largest trading partner and a key investor, with bilateral trade in goods significantly bolstered in the 2024–25 fiscal year. During the Brussels engagement, Goyal is scheduled to hold high-level talks with EU Commissioner for Trade and Economic Security Maroš Šefčovič, aimed at providing strategic guidance to negotiating teams, resolving pending issues, and expediting the conclusion of a balanced and ambitious agreement. The ministerial engagement builds on technical discussions earlier this week in Brussels between Commerce Secretary Rajesh Agrawal and European Commission Director-General for Trade Sabine Weyand.
The proposed India–EU agreement is framed as more than a conventional trade deal, described by officials as a comprehensive partnership addressing modern economic realities. A central pillar of India’s negotiating approach, guided by Prime Minister Modi’s vision, is to secure tangible benefits for the common man, including zero-duty access for labour-intensive sectors such as textiles, leather, apparel, gems and jewellery, and handicrafts. Both India and the EU have reiterated strong political resolve to deliver a comprehensive agreement anchored in a rules-based trading framework that safeguards the interests of farmers and MSMEs while integrating Indian industries more closely into global supply chains.
– global bihari bureau
