Trade and Economic Partnership Agreement (TEPA)

The TEPA between India and the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland, and Liechtenstein, is a landmark agreement. This is India's first comprehensive trade agreement with developed European economies.

Key Highlights

• The TEPA includes a pledge to promote $100 billion investment over 15 years in India and aims to create up to 1 million direct jobs.
• The agreement positions India as a globally integrated and confident nation, focusing on its long-term interests.
• TEPA enhances India's image as a trusted partner, supporting the Atmanirbhar Bharat and Make in India strategies.

Market Access and Tariff Reductions

• EFTA countries have agreed to eliminate or reduce tariffs on 92.2% of tariff lines, covering 99.6% of India's exports by value.
• The agreement provides duty-free treatment for all non-agricultural products, benefiting sectors like organic chemicals, textiles, gems, and industrial products.

Commitments and Collaborations

• Commitments across 128 sub-sectors from Switzerland, 114 from Norway, 110 from Iceland, and 107 from Liechtenstein benefit India's IT professionals and skilled workforce.
• TEPA is crucial for strategic and technological collaborations, especially in precision engineering, pharmaceuticals, health sciences, renewable energy, and frontier technologies.

Energy and Environmental Goals

• India's pledge to achieve Net Zero by 2070 and install 500 GW of renewable energy capacity by 2030 is supported by TEPA.
• India's non-fossil fuel energy capacity, as of July 2025, is nearly 243 GW, which is 50% of its total electricity capacity.
• TEPA opens avenues for European green finance and technology partnerships, crucial for India's clean energy ambitions.

Nuclear Energy and Thorium

• India holds nearly a quarter of the world's thorium reserves, offering clean and safe energy opportunities.
• Collaborations with EFTA, especially Norway, can accelerate thorium-based energy developments.

Conclusion

TEPA serves as a template for India's future global engagements, focusing on strategic partnerships that align with domestic goals. The agreement provides economic, technological, and environmental benefits, setting a new benchmark for global partnerships.