India’s $100 billion investment commitment under its trade agreement with the European Free Trade Association (EFTA) has drawn attention as questions emerge over the pace of investment delivery and Vietnam’s growing role in international trade.
The India–EFTA Trade and Economic Partnership Agreement (TEPA), which came into force on October 1, 2025, covers Switzerland, Norway, Iceland and Liechtenstein. The agreement includes an investment-related commitment aimed at facilitating $100 billion in foreign direct investment over 15 years, alongside the potential creation of one million direct jobs in India.
According to reporting, India’s exports to EFTA markets have yet to gain sustained momentum, while Vietnam’s new agreement with the bloc could increase competition for Indian exporters. Vietnam signed its EFTA trade agreement on October 18, 2026, although the pact is still awaiting entry into force.
Under the India–EFTA agreement, the four EFTA countries aim to increase foreign direct investment in India by $50 billion within the first 10 years and a further $50 billion over the following five years. The agreement also aims to facilitate the creation of one million direct jobs.
Vietnam adds to export competition
Vietnam’s agreement with EFTA introduces another Asian competitor seeking improved access to European markets. Its export strengths include electrical machinery, footwear, apparel and mechanical machinery, sectors in which Indian manufacturers also have interests.
For India, the priority will be to improve the use of preferential market access, strengthen export competitiveness and attract investment into manufacturing, technology and services.
The coming years will be important in determining whether the India–EFTA agreement translates into substantial new investment, employment and export growth. Vietnam’s entry into the EFTA trade network adds urgency to India’s efforts to convert its existing trade arrangements into measurable commercial gains.