India–EFTA Free Trade Agreement (TEPA) Effective from October 1, 2025

Current Context: On 1 Oct 2025, the India–EFTA (European Free Trade Association) Free Trade Agreement, officially called the Trade and Economic Partnership Agreement (TEPA), came into effect.

• It covers Switzerland, Norway, Iceland, and Liechtenstein. Signed in March 2024, the pact includes an investment pledge of USD 100 billion over 15 years, expected to create 1 million jobs in India.
• EFTA granted duty‑free access on 92.2% tariff lines, covering 99.6% of India’s exports, while India liberalised 82.7% lines.
• Sensitive sectors like dairy, coal, and select food items were excluded from concessions.
• Swiss goods such as watches, chocolates, and diamonds will become cheaper in India.
• The agreement also boosts services trade in Information Technology (IT), Research & Development (R&D), education, healthcare, and legal services, marking a major step in India’s global trade integration.

Question:

Q.1 The European Free Trade Association (EFTA) includes which of the following countries?
a) Switzerland, Norway, Iceland, and Liechtenstein
b) Sweden, Denmark, Finland, and Norway
c) Austria, Belgium, Switzerland, and Iceland
d) Germany, France, Italy, and Norway

Answer: a) The European Free Trade Association (EFTA) consists of Switzerland, Norway, Iceland, and Liechtenstein. It promotes free trade and economic cooperation among its members and partner countries.