TEPA becomes first trade pact with firm investment commitment ensuring balance and fairness: Goyal
(source : ANI) ( Photo Credit : ani)
India’s bustling economy just got a major boost with the launch of a new trade deal at the Prosperity Summit in New Delhi. On October 1, the India-EFTA Trade and Economic Partnership Agreement (TEPA) officially kicked off, promising $100 billion in investments over the next 15 years and up to one million direct jobs in India. This pact opens doors for smoother trade in goods and services with the four EFTA countries: Switzerland, Norway, Iceland, and Liechtenstein.
As India races ahead as the world’s fastest-growing major economy—on track to become the third-largest—leaders say this agreement lays a solid groundwork for shared prosperity. Union Commerce and Industry Minister Piyush Goyal called it a game-changer in India’s ties with Europe. “It’s a trusted partnership between friends, built on mutual respect,” Goyal said, highlighting how TEPA stands out as the first trade deal with a binding investment promise. That means balanced benefits for everyone involved.
Goyal pointed out the perfect timing: The agreement started on Navami, lining up with the festival of Vijaya Dashami, which stands for victory and clarity. In a world full of trade uncertainties, he sees TEPA as a steady light guiding stable growth.
The deal unlocks exciting opportunities across sectors like life sciences, clean energy, precision engineering, food processing, artificial intelligence, education, tourism, and more. India brings its massive scale, skilled workforce, and low costs—think data prices that are just 3% of the U.S. rate and under 10% of the global average. EFTA nations offer cutting-edge innovation and financial muscle. Goyal spotlighted how nearly 2,500 global capability centers in India already serve Fortune 500 giants, and Swiss firms like ABB and Nestle have turned India into a launchpad for their worldwide expansion.
“Come invest in India,” Goyal urged EFTA businesses. With 100% foreign direct investment (FDI) allowed in most key sectors, he promised an open, transparent setup with quick approvals. Whether through joint ventures, tech tie-ups, or other collaborations, the government aims to make things easier for investors.
TEPA goes beyond cutting tariffs—it’s about creating a reliable framework that builds trust, cuts risks, and drives sustainable growth. Goyal tied it to India’s “Antyodaya” philosophy, which focuses on lifting everyone, especially those at the bottom. This partnership, he said, will improve lives, spark inclusive development, and strengthen the global economy.
Goyal thanked the negotiators, industry groups like CII, FICCI, and ASSOCHAM, plus Invest India, for making it happen. He called TEPA the start of an enduring bond with Europe that will last generations.
Swiss State Secretary for Economic Affairs Helene Budliger Artieda echoed the excitement. “This isn’t just a document—it’s a win-win for our nations,” she said. Swiss and other EFTA firms showed up in force at the summit, ready to tap into India’s growth. Their economies complement each other perfectly, she added, and TEPA will make that synergy pay off big for both sides.
Commerce Secretary Rajesh Agrawal agreed, calling the launch a bold step toward fair trade and innovation. With India now the fourth-largest economy and climbing, these investments signal huge global faith in its future. He stressed how TEPA will boost exports in areas like engineering, pharmaceuticals, med-tech, food processing, textiles, and marine products.
To make it real, both sides plan sector-specific roadmaps, MSME support through matchmaking and training on quality and sustainability, and faster logistics to slash shipping times. They’ll track progress on trade, investments, and services closely.
What makes TEPA special is the “Power of Five”—each partner’s strengths. India offers scale and talent; Switzerland excels in precision manufacturing and finance; Norway leads in maritime and clean energy; Iceland shines in geothermal and digital tech; and Liechtenstein brings high-end engineering. Together, they’ll ramp up trade, investments, and tech sharing for decades.
Indian farmers and small businesses stand to gain big. Tariff cuts will help exporters of specialty coffees, marine goods, and processed foods reach premium EFTA markets. MSMEs get help with standards, testing, and buyer connections to cut costs. Service providers will find easier paths for digital work, setting up shop abroad, and professional mobility, including potential recognition deals for pros like accountants and nurses.
At the summit, EFTA companies announced fresh investments, celebrating TEPA as a balanced deal that links India’s momentum to European opportunities. It’s all about results: more high-quality jobs, deeper market access, and a brighter economic future for everyone involved.
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