India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) could generate 1 million to 2 million direct and indirect jobs in India by 2040, according to industry chamber ASSOCHAM.

Marking the agreement’s first year, ASSOCHAM highlighted EFTA’s commitment to facilitate $100 billion in investment in India over 15 years, including $50 billion during the first decade. The agreement brings together India and four EFTA members: Switzerland, Norway, Iceland and Liechtenstein.

The pact is expected to strengthen manufacturing, expand exports and attract investment in emerging industries. Advanced manufacturing, green hydrogen, artificial intelligence and robotics are among the key areas identified for future cooperation.

TEPA also provides wider market access for Indian exporters. EFTA has offered tariff concessions on 92.2% of its tariff lines, covering 99.6% of India’s exports. Pharmaceuticals, textiles, engineering goods, chemicals, jewellery, processed foods and marine products are among the sectors expected to benefit.

Bilateral trade between India and EFTA has reached $26.7 billion, while EFTA’s annual imports from across the world total approximately $628 billion, offering further export opportunities for Indian businesses.

ASSOCHAM President Nirmal K. Minda stressed the need to translate investment commitments into manufacturing projects and employment. The industry body also highlighted the importance of including micro, small and medium enterprises (MSMEs) in these partnerships.

Green hydrogen cooperation could be another major opportunity. India’s target of producing at least five million tonnes of green hydrogen annually by 2030 aligns with EFTA members’ expertise in renewable energy, maritime technology and electrolyser development.

The agreement could strengthen India’s position in global value chains while supporting export growth, innovation and job creation. Its long-term impact will depend on how effectively investment commitments translate into projects and business opportunities across Indian industries.