Switzerland Ratifies EFTA‑India Trade Pact, Set for September
Switzerland has formally completed approval of the Trade and Economic Partnership Agreement (TEPA) with India and the other European Free Trade Association (EFTA) members—Norway, Iceland, and Liechtenstein—bringing to a close nearly 16 years of negotiation. India’s Commerce Minister has announced the pact is set to enter into force in September 2025, ushering in new trade and investment opportunities.
$100 Billion Investment, 1 Million Jobs
Under TEPA, EFTA nations are expected to invest up to $100 billion in India over the next 15 years. This investment is projected to generate around 1 million jobs, particularly in manufacturing, innovation, and services—boosting Indian industries and employment.
Trade Benefits and Tariff Reductions
The agreement includes phased elimination of tariffs on over 80% of industrial and agricultural processed goods across a 10‑year timeline. It also simplifies customs processes and strengthens intellectual property rules, creating smoother access for Swiss and other EFTA exports. India’s sensitive sectors like dairy, coal, and gold remain protected.
Enhancing Bilateral Cooperation
Beyond trade, TEPA promotes cooperation in innovation, climate action, education, and vocational development. A Swiss‑Indian Innovation Platform set up in Bengaluru reflects this focus on collaborative research. Both countries will also establish an EFTA Desk in India to guide businesses in capitalising on the agreement.
Strategic Implications
Once operational, TEPA will strengthen India’s global trade links and support initiatives like “Make in India.” It complements ongoing talks with the UK and EU, cementing India’s position as an attractive destination for European investments. Swiss businesses can expect tariff-free access to about 95% of India’s market, reinforcing bilateral economic ties.
