The India–EFTA Free Trade Agreement (FTA), signed earlier this year, formally comes into effect from October 1, 2025. Commerce and Industry Minister Piyush Goyal confirmed the development, marking a major milestone in India’s global trade partnerships.

The agreement links India with the four European Free Trade Association (EFTA) member states—Iceland, Liechtenstein, Norway, and Switzerland—in a comprehensive economic pact.

The pact provides India with a significant trade advantage, as nearly 99% of India’s exports to the EFTA bloc will enjoy duty-free access. This includes key sectors such as textiles, pharmaceuticals, IT services, machinery, and processed food. For imports coming into India, tariff reductions of 80–85% will be implemented, facilitating greater inflows of high-technology equipment, luxury products, precision machinery, chemicals, and advanced medical devices from EFTA economies.

A landmark feature of the agreement is its ambitious investment chapter. The EFTA states have committed to mobilize $100 billion worth of investments into India over the next 15 years. The initial tranche of investments was formally unveiled at a ceremony held at Bharat Mandapam in New Delhi, attended by EFTA ministers, senior officials, industry leaders, and European investors. This investment is expected to strengthen India’s manufacturing base, infrastructure development, renewable energy projects, and innovation-led sectors.

Officials highlighted that the deal goes beyond market access and tariff reductions by providing frameworks for cooperation in areas such as intellectual property rights, digital trade, and sustainable development. The EFTA’s strong expertise in renewable energy, healthcare, and advanced manufacturing is expected to complement India’s growing demand in these sectors, positioning New Delhi as a hub for European investment in Asia.

The FTA also carries geopolitical weight, with India securing a strong economic bridge to Europe outside of the EU framework. Switzerland and Norway, major global players in finance, energy, and technology, see India as a key partner for long-term growth and supply chain diversification. Iceland and Liechtenstein, though smaller in size, bring unique strengths in fisheries, clean energy, and niche services sectors.

For India, the agreement is in line with its broader strategy of positioning itself as a global export hub under the “Make in India” and “Viksit Bharat 2047” visions. It builds on similar trade negotiations with the UK and the EU, aiming to integrate Indian businesses more deeply into global supply chains. Indian industry bodies have welcomed the FTA, anticipating it will boost competitiveness of domestic manufacturers while providing consumers access to a wider variety of European goods.

The government estimates that the India–EFTA FTA could potentially double bilateral trade volumes over the next decade. With Indian exports set to gain near-total duty-free access, sectors like IT, gems and jewellery, and pharmaceuticals are expected to emerge as key beneficiaries. In return, Indian industries are preparing to absorb competitive pressure from advanced European firms, leading to greater innovation and efficiency gains at home.

Based On NewsX Report