The India-EFTA trade agreement, effective Oct 1, 2025, promises fresh investments, jobs, and wider market access.
India and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, will implement their trade and investment agreement from October 1, 2025. The pact is designed to enhance bilateral trade, attract investment, and strengthen India’s position in global markets.
A major highlight is EFTA’s pledge to invest $100 billion in India over the next 15 years, a move expected to create at least one million direct jobs. On the trade front, India will reduce or remove tariffs on a range of EFTA products, including Swiss watches, chocolates, and cut and polished diamonds. In return, Indian exporters will gain duty-free access for engineering goods, textiles, pharmaceuticals, and food items in European markets.
The deal also extends to services such as IT, software, legal, accounting, and R&D, further boosting India’s services sector. Officials estimate that the pact could unlock $500 billion in additional trade and investment flows, supporting India’s $5 trillion economy goal. The Commerce Ministry will soon roll out outreach initiatives to help exporters and MSMEs leverage the new opportunities.
Source: PIB
