India-EFTA TEPA Could Generate Up to 2 Million Jobs by 2040: ASSOCHAM
Investment Commitments and Expanded Market Access Could Support Manufacturing, Technology Partnerships and Export Growth
The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA) could generate 1 million to 2 million direct and indirect jobs in India by 2040, according to the Associated Chambers of Commerce and Industry of India (ASSOCHAM). As the agreement completes its first year, the industry body said the focus is increasingly shifting from trade liberalisation towards investment, manufacturing, technology collaboration and employment generation.
EFTA has committed to facilitating USD 100 billion in investments in India over 15 years, including USD 50 billion during the first decade. The next phase will focus on translating these commitments into projects, manufacturing facilities, clean-energy initiatives and employment opportunities.
Investment Commitments and Employment Potential
Nirmal K. Minda, President of ASSOCHAM, said the priority is to convert the agreement’s investment and employment objectives into practical business opportunities.
“The next step is to translate TEPA’s ambition of USD 100 billion in investment and one million direct jobs into viable projects and employment opportunities,” he said.
Minda identified advanced manufacturing and green hydrogen as potential areas for collaboration and emphasised the importance of involving micro, small and medium enterprises (MSMEs) in these partnerships.
Expanded Market Access for Indian Exporters
Under TEPA, EFTA has offered tariff concessions on 92.2% of its tariff lines, covering 99.6% of India’s exports. Sectors expected to benefit include pharmaceuticals, textiles, engineering goods, chemicals, jewellery, processed foods and marine products. Sensitive sectors such as dairy, soya and coal remain protected.
Bilateral trade between India and EFTA has reached USD 26.7 billion, while EFTA’s annual imports from global markets are valued at approximately USD 628 billion. ASSOCHAM said this presents opportunities for Indian businesses to expand their presence in EFTA markets and diversify their export categories.
Saurabh Sanyal, Secretary General of ASSOCHAM, said India’s 8.9% share of EFTA’s organic chemicals imports illustrates the potential for further growth in pharmaceuticals, machinery, electrical equipment, automobiles, medical devices and textiles.
The opportunities, according to the industry body, extend to established exporters as well as smaller businesses.
Green Hydrogen and Advanced Manufacturing
Green hydrogen is emerging as a potential area of cooperation under TEPA. India has set a target of producing at least 5 million tonnes annually by 2030.
ASSOCHAM identified potential complementarities between India’s hydrogen ambitions and Norway’s maritime technology capabilities, Iceland’s geothermal expertise and Switzerland’s electrolyser strengths. These areas could support technology transfer and industrial partnerships.
Artificial intelligence, robotics and advanced manufacturing have also been identified as possible areas of collaboration. India’s production-linked incentive (PLI) schemes, Semicon India 2.0 and the IndiaAI Mission could provide a domestic policy framework for partnerships with EFTA countries in precision engineering, automation and emerging technologies.
Early Signs of India-EFTA Economic Cooperation
Several initiatives indicate expanding economic engagement between India and EFTA countries, according to ASSOCHAM.
- India and Norway have elevated their relationship to a Green Strategic Partnership.
- Norfund is investing up to USD 100 million in India’s renewable energy sector.
- The Indo-Swiss Joint Research Programme launched three new joint calls in 2026.
- EFTA countries have invested USD 12.48 billion in India since 2000, with Switzerland leading the investment flows.
- Indian companies invested USD 1.28 billion in Switzerland during 2025–26, reflecting two-way capital flows.
States, MSMEs and Farmers in Focus
ASSOCHAM said the benefits of TEPA could extend beyond large corporations to MSMEs, start-ups and farmers.
Maharashtra, Karnataka, Kerala and the North East could gain from increased export opportunities for agricultural products, seafood, coffee and spices. This could broaden participation in the trade partnership across different regions and business segments.
Focus Shifts to Implementation
As TEPA enters its second year, the emphasis is moving towards converting investment commitments and market access provisions into manufacturing projects, technology partnerships and jobs.
According to ASSOCHAM, effective implementation could support industrial competitiveness, expand export opportunities and contribute to India’s objective of becoming a developed economy under the Viksit Bharat 2047 vision.