India-EFTA TEPA
Trade and Economic Partnership Agreement · signed 10 March 2024 · India + EFTA-4 (Switzerland, Norway, Iceland, Liechtenstein)
Overview
The India-EFTA Trade and Economic Partnership Agreement (TEPA) was signed on 10 March 2024 in New Delhi after 16 years and 21 rounds of negotiations. EFTA — the European Free Trade Association — comprises Switzerland, Norway, Iceland, and Liechtenstein. The agreement is unique in that it carries a binding investment-promotion commitment: EFTA states have undertaken to invest USD 100 billion in India over 15 years (excluding portfolio FDI) and to facilitate the creation of 1 million direct jobs in India. The TEPA covers 14 chapters spanning trade in goods, rules of origin, trade in services, investment promotion and cooperation, intellectual property, sustainable development, and dispute settlement.
Tariff coverage
India will eliminate tariffs on 82.7% of its tariff lines covering 95.3% of EFTA exports to India over 7-10 years. EFTA states will eliminate tariffs on 92.2% of their tariff lines covering 99.6% of India's exports. India retains protection on sensitive sectors including dairy, soya, coal, pharmaceuticals (selected lines), gold (preferential 1% MFN preserved), and certain industrial products. Switzerland's gold and watch sectors, Norway's fish, and Iceland's marine products receive preferential treatment subject to RoO compliance.
Rules of origin
TEPA RoO uses a Product-Specific Rules approach with bilateral cumulation across the four EFTA states. The general rule is either 40% Qualifying Value Content or Change in Tariff Heading at HS 4-digit, with PSR overrides for textiles (yarn-forward), automobiles (specific assembly criteria), and chemicals (CTSH plus value content). Form EFTA Certificate of Origin is required for preferential entry into India, issued by Swiss Customs (Switzerland), Norwegian Customs (Norway), Icelandic Customs (Iceland), and Office of Economics (Liechtenstein).
Implementation status
As of mid-2026, the TEPA is in the ratification phase. India completed cabinet approval in March 2024. Switzerland's Federal Assembly ratified in late 2024. Norway and Iceland completed parliamentary ratification in early 2025. Liechtenstein follows Switzerland's customs union arrangement. Entry into force is contingent on instruments of ratification being deposited with the depositary; trade is expected to commence under preferential rates by mid-to-late 2026 in line with the agreement's transition arrangements.