Monrovia – The India–European Free Commerce Affiliation (EFTA) Commerce and Financial Partnership Settlement (TEPA) formally got here into impact on October 1, 2025, marking a historic milestone in India’s world commerce and funding panorama.
By Endurance M. Jones
Signed in New Delhi on March 10, 2024, the TEPA hyperlinks India with 4 superior European economies – Switzerland, Norway, Iceland, and Liechtenstein – underneath a complete framework encompassing commerce, funding, providers, and sustainable improvement.
Because the world’s fastest-growing massive financial system, India is poised to grow to be the third-largest world financial system, whereas the EFTA States are acknowledged leaders in commerce, know-how, and innovation. Collectively, the 2 sides symbolize a mixed GDP of roughly USD 5.4 trillion, signaling huge potential for enhanced financial collaboration.
A key spotlight of TEPA is its inclusion of a binding dedication on funding and employment era, a primary for any Free Commerce Settlement (FTA) signed by India.
Beneath the settlement, EFTA member states have pledged to spice up Overseas Direct Funding (FDI) in India by USD 50 billion inside the first ten years of implementation, adopted by an extra USD 50 billion within the subsequent 5 years. That is anticipated to create over a million direct jobs in India throughout various sectors
The settlement goals to strengthen long-term commerce relations by means of resilient provide chains, elevated funding flows, job creation, and sustainable progress. It simplifies customs procedures and enhances market entry, facilitating smoother enterprise operations between India and EFTA economies.
Consistent with India’s imaginative and prescient of Atmanirbhar Bharat (Self-Reliant India) and the objective of attaining Viksit Bharat (Developed India) by 2047, TEPA emphasizes sustainable and inclusive progress. It additionally promotes cooperation in know-how switch, renewable vitality, talent improvement, precision engineering, and analysis and innovation.
To additional promote funding, a devoted India–EFTA Funding Facilitation Desk has been established to help enterprises and strengthen enterprise partnerships.
Ambassador Verma famous that TEPA not solely displays India’s dedication to constructing equitable and mutually useful commerce relationships but in addition paves the best way for higher collaboration with pleasant nations resembling Liberia.
With annual bilateral commerce between India and Liberia at present round USD 400 million, the settlement opens new alternatives for Liberia to develop exports and supply important items from India within the years forward.
The India–EFTA TEPA stands as a progressive and balanced settlement aimed toward fostering financial progress, innovation, job creation and shared prosperity throughout the continents.
