India`s free trade agreement (FTA) with four European nation bloc European Free Trade Association (EFTA) has come into effect from October 1. It is aimed at boosting two-way commerce and investments. The EFTA members are Iceland, Liechtenstein, Norway, and Switzerland. It was signed on March 10, 2024.

Under the pact, India has received an investment commitment of $100 billion in 15 years from the group. Concurrently, the EFTA nations will aim to facilitate the generation of 1 million direct jobs in India resulting from these investment inflows. This investment commitment explicitly excludes foreign portfolio investment (FPI), focusing on long-term capital for productive capacity building.