Shrimps to software – India-EFTA trade pact to bring $100 billion investment, says Piyush Goyal

India’s free trade agreement with the European Free Trade Association (EFTA) bloc has officially come into force, marking a major step in the government’s efforts to expand access to developed markets. The Trade and Economic Partnership Agreement (TEPA), which took effect on 1 October, is expected to generate investments worth US$100 billion and create at least one million jobs over the next 15 years.

Commerce and Industry Minister Piyush Goyal described the agreement as “historic”, saying it “opens a lucrative market for Indian farmers, fishermen and MSMEs” and will accelerate the Viksit Bharat 2047 mission.

“EFTA countries have pledged an investment of $100 billion over 15 years – the first such commitment in any trade pact in the world. With this, governments of EFTA countries will champion investments into India, creating at least a million jobs, and catalysing PM Modi’s ‘Make in India’ mission,” Goyal said.

What Does the India-EFTA Agreement Entail?

The EFTA grouping—comprising Switzerland, Norway, Iceland and Liechtenstein—has a combined per capita income exceeding US$100,000. The pact covers trade in goods and services, intellectual property, sustainability, labour standards, and cooperation on regulatory practices.

Officials said the investment commitment distinguishes TEPA from other trade deals, as it includes a formal pledge of capital inflows backed by government facilitation.

Goyal noted that India has “shed the hesitations of the past”, positioning its industries to compete globally. “These pacts don’t just open doors, they sharpen our industries, instilling competitiveness and quality that propel us forward,” he said.

How Does This Fit into India’s Broader Trade Strategy?

The TEPA follows a series of free trade agreements signed under the Modi government, including accords with the United Kingdom, Australia and the United Arab Emirates. Negotiations with the European Union are also progressing.

Piyush Goyal said the Modi government had adopted a more consultative approach to trade negotiations, involving stakeholders and industry associations at every stage.

Benefits for Agriculture and Fisheries

The pact is expected to benefit India’s agricultural and seafood exporters, particularly in high-value categories. Goyal said India had protected sensitive sectors such as dairy while securing better market access for rice, pulses, fruits, vegetables, millets and cashews.

“Duty cuts on processed delights like biscuits, confectionery, chocolate, and sauces sweeten the deal,” he said.

He added that the fisheries sector stands to gain significantly: “Fishermen rejoice as exports of frozen shrimp, prawns, and squid will surge through seamless standards cooperation.”

Boost for Investment and Innovation

India has received only US$11.9 billion in cumulative FDI from EFTA countries over the past 25 years. Goyal said the new agreement represents a “quantum leap”, potentially surpassing past inflows.

“The investment pledge is a quantum leap… creating one million direct jobs and countless more indirectly,” he said, noting that India’s total FDI reached US$81 billion in 2024–25, a 14 per cent increase from the previous year.

The minister added that TEPA reinforces India’s intellectual property rights regime, offering “rock-solid regulatory certainty” to attract high-technology industries.

What About Services and Professional Mobility?

The agreement also expands access for Indian professionals and service providers. It paves the way for Mutual Recognition Agreements (MRAs) in nursing, accountancy and architecture, enabling smoother mobility between India and EFTA countries.

“Doors swing wide open for IT, business, cultural, recreational, education, and audio-visual services,” Goyal said. “TEPA slashes technical hurdles via proactive regulatory talks.”

How Does the Pact Address Sustainability and Labour Standards?

The TEPA incorporates provisions reaffirming support for the Paris Agreement and the International Labour Organization’s core conventions, promoting fair labour standards, environmental protection and gender equality.

“It fosters collaboration on climate action, gender equality, and biodiversity conservation, ensuring fair wages, safe jobs, and a greener planet,” Goyal said.

The minister added that the agreement will encourage green technology exchange and cooperation “uplifting workers, slashing inequality, and securing a thriving future for our children.”

What Lies Ahead for India’s Global Trade Ambitions?

Piyush Goyal said the agreement reflects India’s emergence as a reliable trade and investment destination, driven by reforms such as the Production Linked Incentive (PLI) scheme, PM Gati Shakti, and the National Logistics Policy.

“A child born in Modi’s India gets as many opportunities at home as in the Alps, the land of fire and ice, or in the land of the midnight sun,” he said.

With the India-EFTA pact now operational, New Delhi’s focus is likely to shift to ensuring swift implementation and building on momentum in ongoing trade negotiations with the EU and other strategic partners.