The basics
- Parties: India and the EFTA states — Switzerland, Norway, Iceland and Liechtenstein.
- Signed 10 March 2024; in force since 1 October 2025.
The investment commitment
- EFTA states aim to increase foreign direct investment in India by USD 100 billion over 15 years — USD 50 billion within 10 years and a further USD 50 billion in the following five — and to help create 1 million direct jobs.
- A facilitation mechanism monitors delivery of the commitment.
Tariffs and services
- India offers concessions on 82.7% of tariff lines, covering 95.3% of EFTA exports.
- EFTA offers concessions on 92.2% of lines, covering 99.6% of India’s exports.
- India makes services commitments in 105 sub-sectors; Switzerland commits in 128 and Norway in 114.
Tax and social security
- The India–Switzerland and India–Norway tax treaties cap Indian withholding on dividends, interest, royalties and technical fees at 10% each.
- Switzerland stopped applying the treaty’s “most-favoured-nation” clause unilaterally from 1 January 2025, after India’s Supreme Court ruled such clauses aren’t automatic.
- India has social security agreements in force with Switzerland and Norway; the Swiss agreement covers seconded workers but doesn’t totalise contributions.
Setting up in India
Most EFTA companies enter through a wholly owned Indian subsidiary — see company setup in India — or a captive centre (GCC). Investment funds can consider GIFT City. For the wider picture see our Europe page.
Frequently asked questions
Is the India–EFTA TEPA in force?
Yes. It was signed on 10 March 2024 and entered into force on 1 October 2025.
What is the USD 100 billion commitment in TEPA?
EFTA states aim to increase FDI in India by USD 100 billion over 15 years — USD 50 billion in the first 10 years and USD 50 billion in the next five — and to facilitate 1 million direct jobs.
Which countries are in EFTA?
Switzerland, Norway, Iceland and Liechtenstein.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.