Lok Sabha Question No. 2691 (UNSTARRED), answered on 2025-08-05
Subject: EFTA agreement
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 2691 ANSWERED ON 05/08/2025

## EFTA AGREEMENT

## 2691. SHRI TEJASVI SURYA:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) the  amount  of  investment  committed  by  the  European  Free  Trade  Association (EFTA) for technology transfer and manufacturing in India;
- (b) the estimated volume of investments proposed under the agreement, particularly in sectors aligned with Make in India and advanced manufacturing objectives;
- (c) whether the Government has initiated any facilitation mechanism to streamline the inflow of EFTA-linked investments; and
- (d) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद )

## THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a)  &  (b) The  India-European  Free  Trade  Association  (EFTA)  Trade  and  Economic Partnership Agreement (TEPA), signed on 10th March 2024, is a modern and forwardlooking  agreement.  For  the  first  time  in  history  of  Free  Trade  Agreements,  binding commitment of $100 billion  investment  or  ₹  Eight  Lakh  Sixty-Five  Thousand  crores  at current exchange rate and 1 million direct jobs over the next 15 years has been secured from Switzerland, Norway, Liechtenstein and Iceland.

Under Chapter 7 of the TEPA dealing with Investment Promotion and Cooperation, the EFTA States shall aim to increase foreign direct investment (FDI) from their investors into India by USD 50 billion within 10 years from the entry into force of the Agreement, and an additional USD 50 billion in the succeeding 5 years, amounting to a total of USD 100 billion over 15 years. Concurrently, the EFTA States shall aim to facilitate the generation of 1 million  direct  jobs  in  India  resulting  from  these  investment  inflows.  This  investment commitment explicitly excludes foreign portfolio investment (FPI), focusing on long-term capital for productive capacity building and for job creation.

The TEPA is expected to give a significant impetus to the 'Make in India' and 'Atmanirbhar Bharat'  initiatives.  The  investments  are  anticipated  to  flow  into  key  sectors  such  as

infrastructure  and  connectivity,  manufacturing,  machinery,  pharmaceuticals,  chemicals, food processing, transport and logistics, banking and financial services, insurance, and renewable  energy,  thereby  promoting  technology  collaboration  and  access  to  leading technologies. These will help improve skills of our aspirational youth and raise the quality of life for millions of people.

(c) & (d): The Government has established a robust facilitation mechanism to streamline the inflow of EFTA-linked investments.

A dedicated India-EFTA Desk has been launched in February 2025 to function as a singlewindow platform for EFTA businesses looking to invest, expand, or establish operations in India.  This  Desk  provides  support,  including  market  insights,  regulatory  guidance, business  matchmaking,  and  assistance  in  navigating  India's  policy  landscape,  thereby ensuring transparency and ease of doing business.

Furthermore, the TEPA itself establishes a Sub-Committee on Investment Promotion and Cooperation under Chapter 7. This institutional body, comprising government representatives  of  the  Parties,  is  mandated  to  oversee,  review,  and  monitor  the implementation  of  the  investment  promotion  chapter,  including  the  progress  towards achieving the shared objectives on investment and job creation.

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