India’s trade partnership with four European countries is opening new possibilities for manufacturers, exporters and global buyers.
The India–EFTA Trade and Economic Partnership Agreement (TEPA) entered into force on 1 October 2025, strengthening economic ties between India and Switzerland, Norway, Iceland and Liechtenstein.
The agreement is more than a tariff arrangement. It brings together trade opportunities, investment commitments and closer industrial cooperation.
For Indian manufacturers, the important question is:
How can this agreement help us reach the right European buyers and become more competitive in international supply chains?
1. Better Market Access for Indian Products
Under TEPA, EFTA countries have offered market-access commitments covering 99.6% of India’s exports.
This creates opportunities for Indian businesses across sectors including:
- Engineering and precision components
- Electrical and electronic products
- Textiles and apparel
- Chemicals and pharmaceuticals
- Industrial and manufactured goods
However, tariff benefits vary by product and country. Exporters must verify their exact HS code, applicable tariff schedule and Rules of Origin.
Preferential market access is valuable only when manufacturers understand how to use it.
2. A $100 Billion Investment Opportunity
One of the agreement’s most significant features is EFTA’s commitment to promote US$100 billion in investment into India over 15 years, alongside an objective of supporting one million direct jobs.
These are long-term commitments and targets, not investments or jobs already delivered.
For Indian manufacturers, increased investment could support industrial expansion, technology partnerships, stronger production capabilities and integration into international supply chains.
This makes TEPA relevant not only to companies exporting finished products, but also to businesses supplying components to larger manufacturers.
3. New Opportunities for Engineering MSMEs
Indian engineering manufacturers have capabilities across precision machining, metal components, electrical accessories, industrial fittings and custom OEM products.
EFTA markets include technologically advanced industries with demanding sourcing requirements.
This creates an opportunity for qualified Indian suppliers to explore relationships with European OEMs, industrial distributors and specialised buyers.
But competitiveness involves more than price.
International buyers also evaluate quality consistency, technical documentation, material traceability, certifications, production capacity and reliable delivery.
For Indian MSMEs, the opportunity is to position themselves as dependable manufacturing partners rather than simply low-cost suppliers.
4. Stronger Sourcing Options for International Buyers
TEPA is also relevant for European procurement teams seeking to diversify their supply chains.
Indian manufacturers may offer alternative or additional sourcing options for selected products.
For example, an EFTA buyer could retain its existing supplier while qualifying an Indian manufacturer as a second source.
This approach can support:
- Supplier diversification
- Competitive sourcing
- Manufacturing flexibility
- Long-term supply relationships
The objective is not necessarily to replace existing suppliers, but to build a more resilient sourcing network.
5. Turning Trade Benefits Into Actual Export Orders
An agreement does not automatically generate customers.
Indian exporters still need to identify where genuine demand exists and whether their products can compete.
A practical market-entry strategy should follow:
Product → HS Code → Tariff Benefit → Import Demand → Competition → Buyer Identification → Supplier Capability
Before approaching an EFTA buyer, manufacturers should answer:
- Does the target country import our product in meaningful volumes?
- Which countries currently supply it?
- What tariff benefit, if any, applies under TEPA?
- Can our product meet the buyer’s technical and regulatory requirements?
- Can we compete on total landed cost, quality and delivery?
These questions help distinguish a promising export market from an attractive headline.
How V Global Helps Businesses Explore EFTA Markets
At V Global, we believe trade agreements become commercially valuable when they are translated into product-specific opportunities.
Our approach focuses on connecting Indian manufacturing capability with genuine international buyer requirements through:
- Market and import-demand research
- HS-code and competitor analysis
- Buyer identification and prioritisation
- Export-market strategy
- Supplier identification and capability assessment
- Targeted international business development
For Indian manufacturers, the objective is to find suitable markets and qualified buyers. For international buyers, it is to identify reliable Indian manufacturing partners.
The India–EFTA TEPA creates a framework for stronger trade, investment and industrial cooperation between India and four European economies.
But the real benefit will depend on how businesses use it.
Trade agreements open markets. Market intelligence identifies opportunities. Reliable suppliers turn those opportunities into long-term partnerships. For Indian exporters, the next step is not simply asking whether EFTA offers market access.
It is asking:
Which EFTA market needs our product, who is buying it, and how can we become their preferred sourcing partner?
Explore global sourcing and export growth opportunities with V Global at www.vglobalindia.in.