New Delhi: Union Minister of Commerce and Industry Piyush Goyal on Friday said the India–European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) marked the beginning of India’s deeper economic engagement with Europe.
He was addressing a commemorative session marking two years of the signing of the India–EFTA TEPA, organised by Associated Chambers of Commerce & Industry of India (ASSOCHAM) via video conference in New Delhi, according to an official statement.
Goyal said industry leaders must fully leverage the opportunities created under the India–EFTA Trade and TEPA.
The minister highlighted the USD 100 billion legally binding FDI commitment from the four EFTA nations and the potential to create one million jobs in India.
He said that after concluding the EFTA agreement, India successfully finalised a trade agreement with the UK and subsequently completed negotiations with the EU, which was described by Ursula von der Leyen as the “mother of all deals”.
Goyal said the ratification of the India-UK trade agreement was progressing rapidly. He said the agreement could become one of the fastest trade deals ever approved by the UK Parliament under the stewardship of the Indian diplomatic team in London.
The minister said the agreement was signed on July 24 during the visit of Prime Minister Narendra Modi to the UK at Chequers and expressed optimism that it could come into force soon.
Goyal called on industry associations to actively participate in what he described as the transition from “deal to delivery”. He said trade agreements become meaningful only when they translate into higher trade flows, investments, and technology partnerships.
He highlighted the USD 100 billion investment commitment secured from Switzerland, Norway, Liechtenstein, and Iceland, calling it an unprecedented development in global trade negotiations. He said no previous trade agreement under the World Trade Organization framework had combined a free trade pact with a legally binding investment commitment.
The minister said the investment commitment is not merely an announcement or memorandum of understanding but a legally binding provision under the agreement. He added that it also includes the creation of one million jobs in India’s economic ecosystem.
Goyal said the agreement also contains a safeguard clause that allows India to claw back benefits extended under the free trade agreement if investment commitments are not fulfilled. He noted that such a provision had not been included in earlier trade agreements globally.
He said other countries had started exploring similar frameworks after India introduced the model, but none had secured legally binding investment commitments of this scale.
Highlighting early progress, the minister said Iceland had already made an initial investment of USD 30 million in the fisheries sector in Maharashtra. He said such early investments could pave the way for a larger wave of investments in India.
Goyal described the TEPA as a comprehensive agreement covering trade, technology, innovation, and investment. He said it would open major opportunities across sectors and provide nearly 100% market access across the four EFTA countries.
He also encouraged members of ASSOCHAM and businesses in the services sector to utilise the opportunities created under the agreement. He said the framework would support technology collaboration, capacity building, and deeper partnerships with European businesses.
At the same time, the minister said the government had protected India’s sensitive sectors while negotiating trade agreements. He said sectors such as agriculture and other sensitive industries had been safeguarded to avoid adverse impact on domestic stakeholders.
Goyal added that the government had consistently protected the interests of farmers, fishermen, and MSMEs in all trade agreements. He said sensitive sectors such as dairy remained protected, and genetically modified products had not been granted concessions or market access.
Quoting Prime Minister Narendra Modi, the minister said the India–EFTA TEPA reflected a strong commitment to shared prosperity and a deeper partnership among the participating nations.
