"India–EFTA TEPA marks a shift from tariff-centric to investment-linked trade agreements." Critically examine, with reference to the enforceability of its investment commitments.

The India–EFTA Trade and Economic Partnership Agreement (TEPA) was signed in March 2024 and came into force on 1 October 2025. It is India's first FTA to carry a treaty commitment on investment and jobs: USD 100 bn of FDI and 1 million jobs over 15 years [2][3]. The agreement's design is clearly investment-linked. That commitment, however, is weak to enforce.

Evidence of the shift

• Investment written into the treaty: under Article 7.1, EFTA States aim to raise FDI by USD 50 bn within 10 years and by another USD 50 bn in the next 5 [1][2]. No earlier Indian FTA had such a figure in its text.
• Machinery to deliver it: the India–EFTA Desk, running since February 2025, is a single window for investors in renewables, life sciences, engineering and digital sectors [2].
• Tariffs pushed into the background: over 80% of imports from EFTA are gold, and its effective duty is unchanged. Cuts on PLI products are phased over 5–10 years. Dairy, soya, coal and pharmaceuticals are excluded [2].
• Predictability over price: the Commerce Secretary named tariff predictability, which helps long-term investment planning, as TEPA's main value to business [1].

Limits: enforceability and continuity

• Best-endeavour wording: EFTA States only "shall aim to" raise FDI and "facilitate" jobs [1]. Private firms make investment decisions, and nothing penalises a shortfall.
• Back-loaded target: half the amount is due in the last five years [2]. A weak start is allowed, so any failure will show only late.
• Tariff core remains: EFTA's offer covers 92.2% of tariff lines (99.6% of India's exports) and India's covers 82.7% (95.3%) [1][2]. Market access is still the bulk of the deal.
• Utilisation gap: one year in, the Secretary pointed to poor use of the preferences and to non-tariff barriers. He asked States and Export Promotion Councils to draw up 5-year market-wise action plans [1].

Way forward

• Publish yearly EFTA FDI and job figures against the Article 7.1 timeline (about USD 5 bn a year on average) [2].
• Use the treaty's review meetings to discuss any shortfall.

TEPA is therefore a hybrid: it keeps tariff liberalisation and adds an investment pledge that is real but not enforceable. Its credibility will depend on transparent monitoring and on cooperative federalism in export outreach. Done well, it could serve as a model for the India–EU and other FTAs, in line with Atmanirbhar Bharat and SDG 8 (decent work and economic growth).