India-EFTA trade pact covers 99.6% of India’s exports: Commerce Minister | Today’s news

New Delhi: India’s trade pact with the European Free Trade Association (EFTA) offers tariff coverage for 99.6% of India’s exports to the bloc, Commerce Minister Rajesh Agrawal said on Wednesday. At an information event for major exporters in New Delhi, Agrawal called on exporters, industry bodies and state governments to develop specific market plans for greater use of the agreement, according to a trade industry press release.

The India-EFTA Trade and Economic Partnership Agreement (TEPA), which entered into force on October 1, 2025, has opened significant market access for Indian businesses in Iceland, Liechtenstein, Norway and Switzerland, Agrawal said. The briefing was held as part of the second India-EFTA 2026 Prosperity Summit, with leaders of all four EFTA states in New Delhi to commemorate the first anniversary of TEPA and discuss the way forward.

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“EFTA commitments cover 92.2% of its tariff lines, representing 99.6% of India’s exports, with full coverage of non-agricultural products,” Agrawal said. In turn, India has committed to 82.7% of its tariff lines, covering 95.3% of EFTA exports.

Tariff stability

The trade minister said the deal should not be seen as just a tariff reduction arrangement, with predictability emerging as one of its key benefits for businesses. “Tariffs will remain stable for the foreseeable future, with no surprises,” Agrawal said, adding that this will allow companies to invest, build supply chains and plan for the future with greater confidence.

He urged Indian companies to build partnerships with businesses in EFTA countries and develop value chains spanning inputs to final products. Such partnerships, he said, could improve reliability on both sides and help Indian businesses integrate more deeply into high-income markets.

The agreement also provides opportunities in agriculture, with tariffs on many products falling to zero, Agrawal said. He asked exporters to identify products where tariff cuts create an opportunity and establish long-term supply agreements with buyers in EFTA markets.

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The four EFTA countries together import goods and services worth more than $500 billion annually, representing a sizeable market for Indian exporters, the secretary said.

Agrawal urged export promotion boards, industry associations and state governments to take advantage of the opportunities created by TEPA for businesses across the country and explain how companies can use the agreement to expand exports.

He also called for a more targeted approach export promotion and asks stakeholders to prepare a five-year action plan with each EFTA partner country and for individual markets. These plans should identify how India can increase its presence in each market as well as non-tariff barriers that need to be addressed, he said.

Investment pressure

The Secretary also highlighted the investment commitments under TEPA as a key element differentiating the pact from other trade agreements. Under Article 7.1 of the agreement, the EFTA states have committed to seek to increase foreign direct investment from EFTA investors to India by US$50 billion within 10 years of the entry into force of the agreement, and a further US$50 billion over the next five years. The agreement also includes a target to facilitate the creation of 1 million jobs in India within 15 years.

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Agrawal said India’s expanding domestic market offers investment opportunities across sectors and that stronger partnerships between Indian and EFTA businesses could push investment beyond the levels envisioned in the agreement.

He also emphasized the need for Indian businesses to consider EFTA not only as an export destination but also as an expansion of their potential market. “The idea is also that businesses in India should see the EFTA market as an extension of their market,” he said.