Explainer: TEPA, India's 1st trade deal with Europe
India is rolling out its first all-in-one trade and investment pact with Switzerland, Iceland, Norway, and Liechtenstein (the EFTA group) starting October 1, 2025.
Called TEPA, this agreement covers everything from goods and services to investments and sustainable development—basically opening new doors for both sides.
Lower tariffs on EFTA products
TEPA means lower tariffs on over 82% of EFTA products coming into India. Think: more affordable Swiss watches, chocolates, and Norwegian seafood.
Most industrial goods are liberalized immediately, with some phased reductions for other categories, and agricultural tariffs are reduced gradually or excluded for sensitive items—so you might see some European favorites become easier on your wallet.
$100 billion investments over next 15 years
EFTA countries have promised $100 billion in investments over the next 15 years (half of that just in the first decade), which could create about a million direct jobs in India.
The deal also aims to plug Indian companies into European supply chains and spark partnerships in cool sectors like clean energy and advanced manufacturing.