Source: News on Air
Context:
The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) came into effect on 1st October 2025. It is India’s first FTA with four developed European countries, promising $100 billion investments and 1 million jobs in the next 15 years.
About TEPA
- What it is?
- A comprehensive Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA).
- First Indian FTA linking trade, investment, and job creation.
- Signed on:
- 10th March 2024 in New Delhi
- EFTA Members:
- Switzerland (India’s largest EFTA trade partner)
- Norway
- Iceland
- Liechtenstein
Key Features
| Key Area | Provisions / Highlights |
|---|---|
| 1. Investment & Employment | • $100 billion FDI commitment over 15 years • 1 million direct jobs in manufacturing & services |
| 2. Market Access for Goods | • EFTA offers zero-duty access on 92.2% tariff lines • Covers 99.6% of India’s exports |
| 3. Services & Mobility | • Commitments in 100+ sub-sectors (IT, education, audiovisual, business services) • Mutual Recognition Agreements (MRAs) in nursing, architecture, chartered accountancy • Facilitates: Mode 1 (Digital delivery), Mode 3 (Commercial presence), Mode 4 (Personnel mobility) |
| 4. Intellectual Property Rights (IPR) | • TRIPS+ standard with safeguards for generic medicines • Prevents patent evergreening while protecting innovation |
| 5. Sustainable Development | • Focus on green growth, social inclusion, and environmental protection • Encourages technology collaboration in renewable energy, precision engineering, and health sciences |
