One year after its implementation, the India-EFTA trade pact is being hailed as a strategic framework for long-term business planning, offering stability and new investment opportunities beyond tariffs.
The India-European Free Trade Association trade pact is being presented by New Delhi as far more than a conventional tariff-cutting deal, with Commerce Secretary Rajesh Agrawal telling exporters that it offers a framework of stability that should help businesses plan investment and supply chains over the long term. Speaking in New Delhi on Wednesday as India marked the first anniversary of the agreement’s implementation, Agrawal said the deal gives firms the kind of predictability that can support a shift towards investment-led growth.
The agreement, known as the Trade and Economic Partnership Agreement, entered into force on 1 October 2025 after being signed in March 2024, according to EFTA. The bloc, which comprises Switzerland, Iceland, Liechtenstein and Norway, said the pact is designed to improve market access, simplify customs procedures and encourage investment, while also covering services, intellectual property and sustainable development. EFTA leaders were in New Delhi this week to review progress and discuss next steps.
Agrawal said EFTA has offered concessions on 92.2 per cent of its tariff lines, covering 99.6 per cent of India’s exports and giving full access for non-agricultural products. He said India’s own commitments cover 82.7 per cent of tariff lines and account for 95.3 per cent of EFTA exports. In his remarks to export promotion councils, he urged Indian companies to work more closely with partners in EFTA countries to build integrated value chains from inputs to finished goods.
“The most important element for business is predictability. Tariffs will remain stable for the foreseeable future, with no surprises. Businesses can therefore make investments, build supply chains and plan for the future with confidence,” Agrawal said. He also pointed to opportunities in agriculture, where tariffs on several products have been reduced to zero in EFTA markets. Under the pact, EFTA members have committed to work towards $50 billion in foreign direct investment into India within 10 years of implementation, followed by another $50 billion over the next five years, alongside a target of one million jobs in India within 15 years.
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