India–EFTA TEPA: $100B Investment, 1M Jobs, MSME & Startup Growth

India officially stepped into a transformative phase of global trade as the India–EFTA Trade and Economic Partnership Agreement (TEPA) came into force on Wednesday, strengthening economic ties with Switzerland, Iceland, Liechtenstein, and Norway. Union Commerce and Industry Minister Piyush Goyal called it “a truly historic day,” highlighting India’s growing role in international trade and investment.

What Is the India–EFTA TEPA?

The India–EFTA TEPA is more than a conventional free trade agreement. It is a comprehensive economic partnershipdesigned to boost trade, innovation, investment, and job creation. The agreement includes:

• USD 100 billion in investment commitments over 15 years
• A target to create 1 million direct jobs in India
• Market access for MSMEs, startups, farmers, and rural enterprises

TEPA positions India as a trusted partner for Europe while providing a predictable framework for sustainable economic growth.

How Will TEPA Benefit Indian MSMEs?

India’s 63 million MSMEs, which contribute nearly 30% of GDP and employ over 110 million people, will gain:

• Tariff advantages on textiles, specialty coffee, marine goods, and processed foods
• Standards cooperation to reduce duplicate testing and compliance costs
• Buyer–supplier matchmaking platforms linking Indian and European businesses
• Training in packaging, sustainability, and quality standards
• Streamlined logistics to reduce port dwell times

Experts predict up to 20% cost reduction through mutual recognition of certifications and digital compliance, boosting competitiveness in European markets.

How Does TEPA Support Startups and Innovation?

India’s startup ecosystem, the third-largest in the world, will benefit from:

• Access to European venture funding
• Collaboration in AI, deeptech, clean energy, and life sciences
• Creation of innovation clusters combining India’s scale and cost efficiency with EFTA’s R&D expertise

EFTA partners bring complementary strengths: Switzerland’s precision manufacturing, Norway’s maritime expertise, Iceland’s digital ingenuity, and Liechtenstein’s high-value engineering. This alignment is expected to accelerate technology transfer, global supply chain integration, and high-growth entrepreneurship.

Which Jobs Will TEPA Create in India?

TEPA’s one million direct job target spans multiple sectors:

• Engineering and precision manufacturing supported by Swiss investments
• Pharma and medical technology
• Food processing and agri-marine exports
• Textiles and apparel
• IT-enabled services, accountancy, nursing, and education

Commerce Secretary Rajesh Agrawal emphasized that TEPA “marks the beginning of a new era of shared prosperity,” embedding employment growth within trade expansion.

How Will Farmers and Rural Enterprises Benefit?

TEPA extends premium market access to Indian farmers and rural producers through:

• Tariff advantages in agri-marine exports including specialty coffee and seafood
• Alignment with European sustainability and quality standards
• Training and certification programs for rural cooperatives and agri-startups

This framework aims to increase rural incomes while enabling India to become a global supplier of high-quality agricultural products.

⁠The coming into force of India–EFTA TEPA on the eve of Dussehra signifies the victory of clarity and certainty in these uncertain times globally. pic.twitter.com/z0G8qgBVa5

— Piyush Goyal (@PiyushGoyal) October 1, 2025

Why Is TEPA Significant for Global Investors?

Swiss State Secretary Helene Budliger Artieda described TEPA as a “win-win partnership.” European companies are announcing investments in pharmaceuticals, clean energy, engineering, and high-value manufacturing, reflecting confidence in India’s economic trajectory.

TEPA combines the Power of Five:

1. India: scale, talent, and domestic demand
2. Switzerland: precision manufacturing and finance
3. Norway: maritime and clean energy expertise
4. Iceland: digital innovation
5. Liechtenstein: high-value engineering

Together, these complementarities are expected to catalyse trade, innovation, and sustainable growth for decades.

How Will TEPA Strengthen India’s Global Trade Position?

TEPA provides stability, clarity, and trust amid global trade uncertainty and protectionist trends. With 100% FDI in most sectors and streamlined investment pathways, India positions itself as a reliable hub for European investment, innovation, and job creation.

By aligning India’s market scale with Europe’s technological precision, TEPA empowers MSMEs, startups, farmers, and rural enterprises, creating inclusive, sustainable, and innovation-driven growth.

TEPA as a Blueprint for Future Prosperity

The India–EFTA TEPA is a landmark in India’s trade diplomacy. It strengthens India–Europe trade, fosters startup growth, empowers MSMEs and rural enterprises, and generates millions of jobs. For investors, entrepreneurs, and policymakers, TEPA offers a predictable, future-ready framework for economic prosperity and global collaboration.