**Executive Summary:**
The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, includes a binding commitment from Switzerland, Norway, Liechtenstein, and Iceland to invest USD 100 billion and generate 1 million direct jobs in India over the next 15 years. A dedicated India-EFTA Desk was launched in February 2025 to facilitate these investments. The agreement aims to boost the "Make in India" and "Atmanirbhar Bharat" initiatives.
**Key Points / Main Content:**
* **Investment Commitment:**
* EFTA states commit to investing USD 100 billion in India over 15 years.
* The investment is divided into USD 50 billion within the first 10 years and an additional USD 50 billion in the subsequent 5 years.
* The agreement targets the creation of 1 million direct jobs in India during the same period.
* Foreign portfolio investment (FPI) is explicitly excluded; the focus is on long-term capital.
* **Investment Sectors:**
* Key sectors for investment include infrastructure and connectivity, manufacturing, machinery, pharmaceuticals, chemicals, food processing, transport and logistics, banking and financial services, insurance, and renewable energy.
* The investment aims to promote technology collaboration and access to advanced technologies.
* **Facilitation Mechanism:**
* An India-EFTA Desk was established in February 2025 as a single-window platform for EFTA businesses.
* The Desk offers market insights, regulatory guidance, business matchmaking, and assistance in navigating India's policy landscape.
* A Sub-Committee on Investment Promotion and Cooperation is established under Chapter 7 of the TEPA.
* This committee will oversee, review, and monitor the implementation of the investment promotion chapter.
**Impact Analysis:**
**EFTA States (Switzerland, Norway, Liechtenstein, and Iceland):**
* *Impact:* Required to meet the investment target of USD 100 billion and facilitate the creation of 1 million direct jobs in India over 15 years.
* *Action Required:* Increase foreign direct investment (FDI) into India, focusing on specified sectors.
**Indian Government:**
* *Impact:* Responsible for facilitating and streamlining the inflow of EFTA-linked investments.
* *Action Required:* Maintain and support the India-EFTA Desk, participate in the Sub-Committee on Investment Promotion and Cooperation, and ensure a transparent and business-friendly policy landscape.
**Indian Businesses:**
* *Impact:* Potential beneficiaries of increased investment, technology transfer, and job creation.
* *Action Required:* Explore opportunities for collaboration with EFTA businesses, particularly in key sectors like manufacturing, infrastructure, and renewable energy.
**Indian Citizens:**
* *Impact:* Potential beneficiaries of improved skills, employment opportunities, and a higher quality of life.
* *Action Required:* N/A
Key Entities Referenced
European Free Trade Association: An intergovernmental organisation of Iceland, Liechtenstein, Norway and Switzerland
India: A country in South Asia and the primary investment destination in the agreement.
India-European Free Trade Association Trade and Economic Partnership Agreement: A trade agreement between India and the European Free Trade Association, signed on 10th March 2024, committing to investment and job creation in India.
Switzerland: One of the EFTA member states committing to investment in India.
Norway: One of the EFTA member states committing to investment in India.
Liechtenstein: One of the EFTA member states committing to investment in India.
Iceland: One of the EFTA member states committing to investment in India.
Atmanirbhar Bharat: An initiative of the Government of India to promote self-reliance.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
DEPARTMENT OF COMMERCE
LOK SABHA
UNSTARRED QUESTION NO. 2691
ANSWERED ON 05/08/2025
EFTA AGREEMENT
2691. SHRI TEJASVI SURYA:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य एवं उद्योग मंत्री) be pleased
to state:
(a) the amount of investment committed by the European Free Trade Association
(EFTA) for technology transfer and manufacturing in India;
(b) the estimated volume of investments proposed under the agreement, particularly in
sectors aligned with Make in India and advanced manufacturing objectives;
(c) whether the Government has initiated any facilitation mechanism to streamline the
inflow of EFTA-linked investments; and
(d) if so, the details thereof?
ANSWER
वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY
(SHRI JITIN PRASADA)
(a) & (b) The India-European Free Trade Association (EFTA) Trade and Economic
Partnership Agreement (TEPA), signed on 10th March 2024, is a modern and forward-
looking agreement. For the first time in history of Free Trade Agreements, binding
commitment of $100 billion investment or ₹ Eight Lakh Sixty-Five Thousand crores at
current exchange rate and 1 million direct jobs over the next 15 years has been secured
from Switzerland, Norway, Liechtenstein and Iceland.
Under Chapter 7 of the TEPA dealing with Investment Promotion and Cooperation, the
EFTA States shall aim to increase foreign direct investment (FDI) from their investors into
India by USD 50 billion within 10 years from the entry into force of the Agreement, and an
additional USD 50 billion in the succeeding 5 years, amounting to a total of USD 100 billion
over 15 years. Concurrently, the EFTA States shall aim to facilitate the generation of 1
million direct jobs in India resulting from these investment inflows. This investment
commitment explicitly excludes foreign portfolio investment (FPI), focusing on long-term
capital for productive capacity building and for job creation.
The TEPA is expected to give a significant impetus to the ‘Make in India’ and ‘Atmanirbhar
Bharat’ initiatives. The investments are anticipated to flow into key sectors such as
1infrastructure and connectivity, manufacturing, machinery, pharmaceuticals, chemicals,
food processing, transport and logistics, banking and financial services, insurance, and
renewable energy, thereby promoting technology collaboration and access to leading
technologies. These will help improve skills of our aspirational youth and raise the quality
of life for millions of people.
(c) & (d): The Government has established a robust facilitation mechanism to streamline
the inflow of EFTA-linked investments.
A dedicated India-EFTA Desk has been launched in February 2025 to function as a single-
window platform for EFTA businesses looking to invest, expand, or establish operations in
India. This Desk provides support, including market insights, regulatory guidance,
business matchmaking, and assistance in navigating India's policy landscape, thereby
ensuring transparency and ease of doing business.
Furthermore, the TEPA itself establishes a Sub-Committee on Investment Promotion and
Cooperation under Chapter 7. This institutional body, comprising government
representatives of the Parties, is mandated to oversee, review, and monitor the
implementation of the investment promotion chapter, including the progress towards
achieving the shared objectives on investment and job creation.
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