THEBUSINESSBYTES BUREAU

NEW DELHI, OCTOBER 7, 2026

Commerce Secretary Rajesh Agrawal on Wednesday called for greater utilisation of the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), saying the pact offers Indian businesses wide market access and a predictable trade environment while opening up significant opportunities for exports, investment and job creation.

Addressing export promotion councils, industry associations, exporters and business representatives from the EFTA countries at an outreach event for major exporters here, Agrawal said the agreement, which entered into force on October 1, 2025, has opened the markets of India and the four EFTA members — Iceland, Liechtenstein, Norway and Switzerland — to each other.

Leaders from all four EFTA states are in New Delhi to mark the first anniversary of TEPA and discuss the way forward, he said.

Under the agreement, EFTA's commitments cover 92.2 per cent of its tariff lines, accounting for 99.6 per cent of India's exports, with full coverage of non-agricultural products. India's commitments cover 82.7 per cent of tariff lines, accounting for 95.3 per cent of EFTA exports.

Agrawal said the significance of TEPA goes beyond tariff reductions, with predictability emerging as one of its biggest advantages for businesses.

"Tariffs will remain stable for the foreseeable future, with no surprises. Businesses can therefore make investments, build supply chains and plan for the future with confidence," he said.

The Commerce Secretary urged Indian companies to forge partnerships with EFTA businesses and develop integrated value chains, covering everything from inputs to finished products, to enhance reliability and competitiveness on both sides.

Highlighting the high-income nature of EFTA markets, Agrawal said they place a strong premium on quality, making them an important testing ground for Indian exporters.

"If you are able to create quality products in this market, then you are ready for any other market," he said, adding that quality achieved in these markets would be recognised and valued globally.

Agriculture, too, offers considerable export potential, he said, noting that duties on several products have been reduced to zero in these high-consumption markets. Exporters should identify such products and develop sustained supply chains to EFTA countries, he added.

The four EFTA countries collectively import goods and services worth more than USD 500 billion annually, providing a substantial market that Indian exporters can tap into, Agrawal said.

Calling for coordinated efforts to translate the agreement into actual business gains, he asked export promotion councils, industry bodies and state governments to take the benefits of TEPA to enterprises across the country and explain how a free trade agreement can be utilised to expand overseas markets.

He also called for a five-year, country-specific and market-specific action plan, with stakeholders identifying areas for export growth as well as non-tariff barriers that need to be addressed.

"The idea is not that businesses in EFTA countries only see India as an extension of their market. The idea is also that businesses in India should see the market of EFTA countries as an extension of their market," Agrawal said.

A key differentiator of TEPA, he noted, is its investment commitment. Under Article 7.1 of the agreement, the EFTA states have committed to aim to increase foreign direct investment from EFTA investors into India by USD 50 billion within 10 years of the agreement's entry into force and by an additional USD 50 billion over the following five years.

The agreement also envisages facilitating the generation of one million jobs in India within 15 years.

Agrawal said India, with its rapidly expanding economy and investment opportunities across sectors, offers significant scope for deeper business partnerships with EFTA companies, adding that stronger two-way engagement could take investment beyond the levels envisaged under the agreement.

The outreach event was organised by the Department of Commerce as part of the second India-EFTA Prosperity Summit 2026, with a focus on converting the broad market access and investment commitments under TEPA into concrete commercial opportunities for businesses across India.