The India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) officially comes into force today, 1 October 2025. This is the binding commitments on investment and job creation.
So for India it means FDI boost of $100 billion in capital inflows over 15 years and 1 million direct jobs. Also, Indian goods gain entry to high-value European markets.
As per the Govt. official press release, India’s interests in generic medicines and concerns related to evergreening of patents have been fully addressed and that TEPA ensures IPR commitments at TRIPS level between signatories.
What is evergreening? It is the practice of extending a patent’s life for a high-profit drug (medicine), by filing for new patents on minor or insignificant changes by pharmaceuticals. This allows a company to maintain its market monopoly and revenue stream, delaying the entry of more affordable generic competition after the original patent expires. India’s stand has been against this practice, since it delays the entry of Indian low cost generic medicines in market.
The European Free Trade Association (EFTA) is distinct from the European Union and comprises four advanced economies with high purchasing power. Among EFTA countries, Switzerland is the largest trading partner of India followed by Norway. Under the agreement, the four EFTA nations, Switzerland, Norway, Iceland, and Liechtenstein have pledged to promote investments worth USD 100 billion in India over 15 years, with half the amount in the first decade. These investments are expected to create 1 million direct jobs, offering a massive boost to India’s manufacturing and services sectors.
Under TEPA, EFTA has offered 92.2% of tariff lines encompassing 99.6% of India’s exports. Includes 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP).
India has offered commitments in 105 sub-sectors, while EFTA commitments include 128 (Switzerland), 114 (Norway), 107 (Liechtenstein), 110 (Iceland). TEPA enables Mutual Recognition Agreements (MRAs) in professional services.
LAW-IP AND MORE 