The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) is likely to generate between one million and two million direct and indirect jobs by 2040, according to a statement from the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The agreement brings India into a trade partnership with Switzerland, Norway, Iceland and Liechtenstein. According to ASSOCHAM, the pact is expected to support high-quality investment, industrial competitiveness and employment opportunities.
Trade Agreement Offers Investment Opportunities
The statement highlighted EFTA’s commitment to facilitate USD 100 billion in investment in India over 15 years, including USD 50 billion during the first decade. The investment commitment is expected to support manufacturing facilities, clean-energy ventures and employment-generating projects.
Nirmal K. Minda, President of ASSOCHAM, said the agreement is evolving beyond a conventional trade arrangement into a platform for investment, innovation and jobs. He also emphasised the importance of advanced manufacturing and green hydrogen in driving the next phase of industrial growth.
The next step is to translate the investment commitment into viable projects and employment opportunities, the statement noted.
Tariff Concessions Expand Export Opportunities
India–EFTA bilateral trade reached USD 136 billion in 2024–25, according to the figures highlighted in the report. The agreement offers tariff concessions on 92.2% of tariff lines, covering 99.6% of India’s exports.
ASSOCHAM identified pharmaceuticals, textiles, engineering goods, chemicals, jewellery, processed foods and marine products among the sectors expected to benefit from expanded trade opportunities.
The agreement also provides Indian exporters with wider market access. According to the statement, EFTA’s annual imports of approximately USD 628 billion represent a significant opportunity for Indian businesses.
Textiles and Manufacturing Among Potential Beneficiaries
Textiles are among the sectors identified as having opportunities under the agreement, alongside pharmaceuticals, chemicals, engineering products and automobiles.
Maharashtra, Karnataka, Kerala and states in Northeast India could also benefit from export opportunities in agricultural products, seafood, coffee and spices. The agreement is expected to create opportunities for large industries, micro, small and medium enterprises (MSMEs), start-ups and farmers.
Green Hydrogen Emerges as a Cooperation Area
Green hydrogen has been identified as an emerging area for India–EFTA cooperation. India’s target to produce at least five million tonnes of green hydrogen annually by 2030 aligns with Norway’s maritime technology, Iceland’s geothermal expertise and Switzerland’s electrolyser expertise, according to the statement.
The partnership could support cooperation in clean energy alongside trade and industrial development.
As implementation progresses, translating investment commitments into projects and strengthening market access will be important to realising the agreement’s expected employment and trade benefits.