The recently implemented India European Free Trade and Economic Partnership Agreement (India-EFTA TEPA) has opened a new gateway for Indian exporters to reach premium European markets with reduced trade barriers and increased market access.
Signed between India and the European Free Trade Association (EFTA) , which includes Switzerland, Norway, Iceland, and Liechtenstein, this agreement strengthens India’s trade ties with some of the most stable and high-income economies in Europe.
What is India–EFTA TEPA?
The India–EFTA TEPA is a comprehensive trade and economic partnership that aims to deepen cooperation in goods, services, investments, and sustainable development.
Unlike the European Union, the EFTA countries are independent economies known for their high purchasing power, advanced technology, and demand for quality imports. Through TEPA, Indian exporters can access these markets on preferential terms, supported by lower tariffs and simplified documentation.
Who Benefits from This Agreement?
The benefits of this agreement extend across several layers of the trade ecosystem:
- Indian Exporters – Gain new market access, reduced import duties, and greater recognition of Indian-origin goods.
- EFTA Importers – Access competitively priced, high-quality Indian goods with smoother customs processes.
- Consumers – Enjoy a wider range of affordable, high-quality products.
- Government and Trade Bodies – Witness a growth in foreign trade volumes, improved export diversification, and greater foreign investment inflow.
Target Audience
The India-EFTA TEPA is especially significant for:
- Manufacturers and Exporters seeking to expand exports in Europe.
- Export Promotion Councils and Trade Bodies like APEDA, MPEDA, and the Textile Committee.
- Policy Makers, DGFT Officials, and Customs Consultants dealing with trade facilitation.
- Importers in EFTA countries looking for reliable Indian suppliers.
When Was It Signed?
The India EFTA TEPA was officially signed in March 2024 after extensive negotiations spanning more than a decade.
To facilitate implementation, the Directorate General of Foreign Trade (DGFT) issued Public Notice No. 30/2025-26 dated 29 October 2025, amending Appendix 2B of the Foreign Trade Policy 2023.
This notification listed all the authorized agencies eligible to issue the Preferential Certificate of Origin (CoO) , a mandatory document to avail tariff benefits under the TEPA framework.
What Products Are Covered?
The India – EFTA TEPA covers a broad spectrum of goods, reflecting India’s diverse export base. The authorized agencies designated by DGFT include product-wise specialization, showing the wide coverage of the agreement.
Some of the major product categories include:
- Agricultural & Processed Food Products – (Handled by APEDA) including cereals, fruits, vegetables, ready-to-eat products, and beverages.
- Marine Products – (Handled by MPEDA) including seafood, frozen fish, shrimp, and aquaculture products.
- Silk & Textiles – (Handled by Central Silk Board and Textile Committee) including yarns, fabrics, garments, and fashion accessories.
- Spices & Cashew Nuts – (Handled by Spices Board) including pepper, turmeric, cardamom, and cashew kernels.
- Coir & Handicrafts – (Handled by Coir Board and DC Handicrafts).
- Tobacco Products – (Handled by Tobacco Board).
- All Products from SEZs and EOUs – Exporters operating within notified Special Economic Zones are also eligible under this framework.
In addition to these, industrial products, engineering goods, construction machinery, and heavy equipment are also covered under “all products” category, enabling exporters in these sectors to claim preferential tariff benefits while exporting to EFTA countries.
Benefits for Indian Exporters
For Indian exporters, the India-EFTA TEPA is not just a trade agreement , it’s a competitive advantage.
Here’s how:
- Reduced or Zero Tariffs: Many Indian exports will now attract zero or minimal import duty in EFTA countries, especially for sectors like textiles, marine, food, spices, and engineering goods.
- Easier Documentation: Exporters can obtain the Preferential Certificate of Origin from authorised agencies such as DGFT, EIC, APEDA, or MPEDA.
- Wider Market Access: The agreement provides Indian exporters entry into stable, high-value European economies that traditionally import quality goods.
- Boost for MSMEs: Small and medium exporters can now compete better in niche European markets with reduced cost barriers.
- Technology and Investment Collaboration: EFTA countries are global leaders in high-precision technology, engineering, and innovation. The TEPA framework will attract investments, joint ventures, and technology collaborations beneficial for Indian industry.
How Exporters of Engineering Goods and Heavy Equipment Benefit
Yes – exporters of engineering goods, construction machinery, and heavy equipment are among the key beneficiaries of the TEPA.
The “All Products” category under DGFT’s authorised agency list means that engineering and industrial exporters can avail preferential tariffs when shipping to Switzerland, Norway, Iceland, and Liechtenstein.
This includes products such as:
- Road construction equipment (e.g., rollers, pavers, batching plants).
- Heavy machinery and industrial components.
- Electrical and mechanical engineering goods.
- Auto parts, engines, and fabrication units.
With EFTA’s advanced infrastructure and manufacturing ecosystem, Indian suppliers can now integrate into their value chains with lower tariffs and simplified trade procedures.
This is a big boost for Make in India manufacturing sectors that export construction and industrial machines worldwide.
Benefits for Importers in EFTA Countries
EFTA importers stand to gain significantly as well:
- Access to high-quality Indian goods at competitive prices due to tariff concessions.
- Diversified supply chains, reducing dependency on a single sourcing country.
- Stable and long-term trade partnerships with Indian manufacturers known for cost efficiency and product reliability.
- Sustainability and compliance assurance through certified export agencies like APEDA, MPEDA, and Textile Committee.
Tariff Reductions Under the Agreement
Under the India-EFTA TEPA, most Indian exports will enjoy tariff reduction or elimination depending on the product category:
- Textiles & Garments: Duty reduced to 0–2% (previously 6–8%).
- Marine Products: Duty-free access for major seafood items.
- Processed Foods & Spices: Up to 80–100% tariff reduction.
- Engineering Goods & Machinery: Preferential tariff access with significant reduction in customs duties.
- Handicrafts, Leather & Jewellery: Preferential or zero-duty entry.
(Tariff rates differ across EFTA countries and specific product codes, but overall impact is highly positive for Indian exporters.)
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