How does TEPA balance market access with protection of sensitive sectors and policy space in IPR and public health?

The India–EFTA Trade and Economic Partnership Agreement (TEPA) has been in force since 1 October 2025. It is India's first FTA with four developed European nations: Switzerland, Norway, Iceland and Liechtenstein [1]. The deal is asymmetric by design: India gets wide access to EFTA markets, opens its own market more slowly and keeps clear carve-outs.

Market access: wide and asymmetric

• EFTA offers 92.2% of tariff lines, covering 99.6% of India's exports, including all non-agricultural and processed agricultural products [1].
• India offers 82.7% of tariff lines, covering 95.3% of EFTA's exports [1].
• Services: India commits 105 sub-sectors and the EFTA States commit 107–128. Modes 1, 3 and 4 are covered, with MRAs in nursing, chartered accountancy and architecture [1].
• The treaty fixes zero duties in law, which gives exporters tariff predictability for long-term planning [2].

Protecting sensitive sectors

• Exclusion list: dairy, soya, coal, pharmaceuticals, medical devices and select food products. This protects farm livelihoods and strategic industries [1].
• Gold makes up over 80% of imports from EFTA and gets no change in effective duty, which limits the risk of a wider trade deficit [1].
• Phased cuts over 5–10 years for Make in India and PLI products give new domestic capacity time to mature [1].
• Chapters on rules of origin, trade remedies, SPS and TBT guard against goods being routed through EFTA and against import surges [1].

Policy space in IPR and public health

• The IPR chapter reaffirms TRIPS and keeps India's public-health flexibilities [1].
• Safeguards against patent evergreening protect affordable generics, which India's role as the "pharmacy of the world" depends on [1].
• Keeping pharmaceuticals and medical devices on the exclusion list protects domestic drug and device makers [1].

Gaps in the balance

• India's farm exports to EFTA were only USD 72.37 mn in FY 2024–25 [1]. Non-tariff barriers and quality standards still limit how much exporters actually use the agreement [2].

Overall, TEPA trades broad gains in goods, services and investment for carefully chosen protections. EFTA States "shall aim to" invest USD 100 bn under Article 7.1 [1]. The Commerce Secretary has asked Export Promotion Councils, industry and States to draw up 5-year action plans for each market that tackle non-tariff issues [2]. Done well, these can turn this negotiated balance into real exports and jobs, in line with Atmanirbhar Bharat and SDG 8 (decent work and economic growth).