In a move set to bolster economic ties, a delegation from the European Free Trade Association (EFTA) — comprising Norway, Switzerland, Iceland, and Liechtenstein — is scheduled to visit New Delhi. The primary purpose of their visit is to formally announce the first phase of a substantial $100 billion investment commitment. This significant financial injection is a direct result of the recently finalized Free Trade Agreement (FTA) between India and the EFTA bloc, which is slated to become effective from October 1, 2025.
The finalization of this trade agreement was confirmed by Union Commerce Minister Piyush Goyal during his address at the UP International Trade Show 2025. He highlighted that ministers from India and EFTA member states are expected to officially launch the FTA in New Delhi, marking a new era of economic cooperation.
Sources indicate that the EFTA delegation will include approximately 40 members from the business community, eager to present their investment plans. These investments are anticipated to flow into high-growth sectors such as information technology, clean energy, and pharmaceuticals. While specific project details and investment amounts have not been disclosed, a formal announcement is expected on October 1st.
The Trade and Economic Partnership Agreement (TEPA) between India and EFTA, signed on March 10, includes a legally binding commitment from the EFTA bloc to invest $100 billion over 15 years, aiming to create one million jobs. This pioneering aspect of the agreement, focusing on target-oriented investment and job creation, sets it apart in the history of FTAs. The investments are specifically targeted at foreign direct investment (FDI) in sectors like digital trade, banking, financial services, transport, logistics, industrial machinery, biotechnology, chemicals, food processing, and clean energy.
Minister Goyal emphasized India’s growing attractiveness to foreign investors, attributing it to the nation’s inherent economic strengths. He noted that India’s economy has transformed significantly, moving from the ‘fragile-five’ to becoming the fourth-largest globally, with aspirations to become the third-largest within the next two years. He cited strong economic fundamentals, including low inflation, high GDP growth, substantial foreign reserves, and a robust banking sector, as key drivers for this investor confidence.
India’s proactive approach to forging FTAs is evident in its recent agreements with the UAE, Australia, and the UK, in addition to EFTA. The nation is also actively engaged in trade talks with the US, the European Union, New Zealand, Oman, Peru, and Chile, underscoring India’s global economic appeal. The Minister also referenced the strong India-Russia relationship, noting ongoing discussions to negotiate an FTA with the Eurasian Economic Union (EAEU).