THEBUSINESSBYTES BUREAU

NEW DELHI, MARCH 13, 2026

Union Minister of Commerce and Industry Piyush Goyal on Friday called upon Indian industry to actively leverage the opportunities emerging from the India–EFTA Trade and Economic Partnership Agreement (TEPA), highlighting the agreement’s unprecedented $100 billion legally binding foreign direct investment commitment and its potential to generate one million jobs across the country.

Addressing a commemorative session marking two years of the signing of the India–EFTA TEPA, organised by ASSOCHAM via video conference in New Delhi, the minister described the pact as a historic milestone in India’s economic engagement with Europe and a significant step in strengthening global trade partnerships.

Goyal said the TEPA agreement marked the beginning of India’s deeper economic integration with European markets. Following the EFTA deal, India went on to conclude trade agreements with the United Kingdom and later with the 27-nation European Union. The EU pact was described by European Commission President Ursula von der Leyen as the “mother of all deals,” underscoring the scale and strategic importance of the partnership.

Highlighting progress on the India–UK trade agreement, Goyal noted that the pact, signed on July 24 during the visit of Prime Minister Narendra Modi to the United Kingdom at Chequers, is advancing swiftly through the ratification process. He expressed optimism that it could become one of the fastest trade agreements ever approved by the UK Parliament under the stewardship of India’s diplomatic team in London.

The minister emphasised that trade agreements must move beyond negotiations and translate into real economic outcomes. Calling on industry associations to help drive this transition “from deal to delivery,” he stressed that the success of such agreements ultimately depends on increased trade flows, investments, technology partnerships and business collaborations.

A key highlight of the India–EFTA TEPA, Goyal said, is the $100 billion investment commitment secured from the four member nations of the European Free Trade Association — Switzerland, Norway, Liechtenstein and Iceland. He described it as an unprecedented achievement in global trade negotiations, noting that never before in the history of the World Trade Organization or global trade agreements has a free trade agreement been linked to a legally binding investment commitment of this scale.

According to the minister, the commitment is not merely a declaration or memorandum of understanding but a legally enforceable provision under the agreement. The investment pledge also includes a commitment to create one million jobs within India’s economic ecosystem, making it a transformative element of the trade pact.

Goyal further pointed out that the agreement contains a safeguard clause allowing India to claw back benefits extended under the FTA if the promised investments are not realised. Such a provision, he said, has not been seen in earlier global trade agreements and reflects India’s strategic approach to negotiating trade deals.

The minister observed that several countries have since attempted to replicate similar frameworks in their trade agreements, but none have yet been able to secure legally binding investment commitments of comparable scale.

Pointing to early signs of progress, Goyal said Iceland has already made an initial investment of $30 million in Maharashtra’s fisheries sector. He remarked that “the flood starts with a drizzle,” expressing confidence that such early investments would pave the way for a much larger wave of capital inflows into India.

Describing the TEPA as a comprehensive agreement covering trade, technology, innovation and investment, the minister said it opens up significant opportunities across sectors. He noted that the pact provides nearly 100 percent market access in the four EFTA countries and substantially expands opportunities in the services sector.

Goyal encouraged members of ASSOCHAM and businesses from the services sector to fully utilise the opportunities offered by the agreement. He highlighted potential areas for collaboration in technology development, capacity building and deeper partnerships between Indian and European companies.

At the same time, the minister stressed that the government has carefully safeguarded India’s sensitive sectors while negotiating free trade agreements. He reiterated that agriculture and other vulnerable industries have been protected and concessions have not been provided where they could adversely affect domestic stakeholders.

He added that the government has consistently protected the interests of farmers, fishermen and MSMEs in trade negotiations. Sensitive sectors such as dairy remain protected, and genetically modified products have not been granted concessions or market access.

Quoting Prime Minister Narendra Modi, Goyal said the India–EFTA TEPA reflects a strong commitment to shared prosperity and to building a deeper and more inclusive partnership among participating nations.

The minister also urged ASSOCHAM to take the message of the agreement to grassroots businesses across India. Noting that the industry body represents thousands of associations and lakhs of enterprises, he said it could play a crucial role in connecting Indian producers and service providers with global markets.

He called on the organisation to link women entrepreneurs, youth, farmers, food processing units, seafood exporters, MSMEs and service sector professionals with the opportunities created through the agreement.

Goyal also highlighted prospects for professionals such as architects, chartered accountants, nurses, engineers, IT specialists and business services providers, as well as stakeholders in the audiovisual, education and cultural sectors.

Informing participants about new facilitation measures, the minister said an FTA desk has been established in western India to assist businesses exploring opportunities under India’s trade agreements. The desk will help connect Indian companies with businesses in partner countries and support the identification of collaboration opportunities.

Encouraging ASSOCHAM to act as a bridge between Indian enterprises and companies in the four EFTA nations, Goyal said such institutional engagement will be crucial in ensuring that the TEPA evolves into a landmark agreement driving India’s long-term economic growth.

Referring to ongoing geopolitical challenges and global uncertainties, the minister acknowledged that the world is currently navigating a complex economic environment. However, he expressed confidence that these challenges will eventually pass and open up new opportunities for growth and cooperation.

Concluding his address, Goyal voiced confidence that Indian businesses will expand globally and achieve significant success by leveraging the opportunities created through India’s expanding network of trade agreements.