Beirut: The landmark Trade and Economic Partnership Agreement (TEPA) between India and the EFTA States (Iceland, Liechtenstein, Norway, and Switzerland) has officially come into effect, marking a pivotal moment in the economic relations between these parties. The agreement, which commenced on October 1, 2025, is poised to enhance bilateral trade and investment, offering significant opportunities for economic growth and development.
According to National News Agency - Lebanon, the TEPA is groundbreaking as it includes a commitment to substantial investment and job creation, a first for any free trade agreement signed by India. Under the agreement, the EFTA States aim to increase Foreign Direct Investment (FDI) in India by US$50 billion within the first ten years, with an additional US$50 billion to follow over the subsequent five years. This influx of investment is expected to create at least one million jobs in India across various sectors.
The agreement promises numerous benefits, such as more resilient supply chains, increased trade and investment flows, and new job opportunities, all contributing to sustained economic growth. It enhances market access and simplifies customs procedures, facilitating the expansion of Indian and EFTA businesses into growing markets.
Moreover, the TEPA aims to foster and promote investment opportunities between the parties, creating an environment conducive to innovation and business expansion for both Indian and EFTA enterprises. These developments align with India's goal of achieving Atmanirbhar Bharat, or self-reliant India, as part of its vision to become a developed nation by 2047.
The agreement also opens avenues for India's bilateral trade with friendly countries, including Lebanon. With the current pace of growth, the annual bilateral trade between India and Lebanon, currently valued at about $500 million, is expected to surpass $1 billion in the coming years. This growth could see Lebanon sourcing more goods from India and enhancing its exports.