India-EFTA trade pact boosts export opportunities

India's exports of select products, including motor cars, heavy water and moulding patterns, have shown healthy growth to the European Free Trade Association (EFTA) bloc following implementation of the Trade and Economic Partnership Agreement (TEPA). TEPA came into effect on 1 October 2025. EFTA comprises Switzerland, Norway, Iceland and Liechtenstein. Why it matters EFTA has committed to promoting $100 billion of investment into India over 15 years, with the potential to create 1 million direct jobs. Under TEPA, EFTA provides market access across 92.2% of tariff lines covering 99.6% of India's exports, including 100% of non-agricultural products. This could create opportunities for Indian manufacturing and services companies by improving export access while encouraging long-term foreign investment. India has protected sensitive sectors including dairy, soya, coal and certain agricultural products. Market view: The agreement is structurally positive for India's export and manufacturing ecosystem. However, the investment commitment and improved market access should ultimately be judged by actual investment inflows, export volumes and job creation. What to watch: EFTA investment announcements, export growth, manufacturing capacity additions and sector-specific beneficiaries. Learning outcome: Free-trade agreements can create long-term opportunities, but investors should identify companies that convert improved market access into actual exports, revenue growth and stronger profitability.