‘India–EFTA TEPA sets global benchmark with legally binding $100 bn investment commitment’

New Delhi: For the first time ever, a Free Trade Agreement includes a legally binding commitment of $100 billion in investments and the creation of one million jobs in India, Commerce and Industry Minister Piyush Goyal said on Saturday.

Speaking at a session commemorating the second anniversary of the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), Goyal said the pact marks a new approach in India’s trade negotiations. “This has never happened before and reflects India’s new approach to trade negotiations,” he said.

The minister noted that TEPA marked the beginning of deeper economic engagement between India and Europe. Following the agreement, India also concluded trade pacts with the United Kingdom and is advancing negotiations with the 27-nation European Union, expanding economic ties with several European economies.

Goyal said the comprehensive agreement promotes trade, technology, innovation and investment while opening significant opportunities in the services sector. At the same time, sensitive sectors such as dairy and genetically modified products have been safeguarded to protect domestic interests.

The event was organised by ASSOCHAM to mark two years of the landmark agreement between India and the EFTA bloc comprising Switzerland, Norway, Iceland and Liechtenstein.

Chairing the session, Tribhuvan Darbari, Chairman of the BIMSTEC Business Council Secretariat (India) and Chairman of the national part of the SCO Business Council Secretariat, said trade agreements represent more than tariff reductions and market access. “They are the architecture of trust between nations and the institutionalisation of economic cooperation,” he added.

Darbari highlighted that India’s services sector, which contributes nearly 55 per cent to the country’s Gross Value Added, stands to benefit significantly from TEPA. The agreement provides market access across more than 100 services sub-sectors, including information technology, business services, education and audiovisual industries.

He also emphasised opportunities for tech collaboration with Switzerland & Norway could boost India’s access to European markets.