India–EFTA Trade Pact To Take Effect From October 1: Says Switzerland
The free trade agreement between India and the European Free Trade Association (EFTA) will come into force on October 1, Switzerland announced on September 3, calling it a landmark deal that embeds legally binding provisions on trade and sustainable development for the first time in any Indian FTA.
The Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, covers Iceland, Liechtenstein, Norway, and Switzerland. Under the pact, the bloc has committed to invest US$ 100 billion in India over 15 years, including US$ 50 billion within the first decade and another US$ 50 billion in the subsequent five years. The investment pledge, a first of its kind in India’s trade agreements, is expected to create one million direct jobs in the country.
In return, India will lower or eliminate tariffs on several products, including Swiss watches, chocolates, cut and polished diamonds, pharmaceuticals, machinery, optical instruments and processed agricultural goods. Switzerland noted that the deal improves market access for 94.7% of Swiss exports to India (excluding gold), while enhancing legal certainty and predictability for bilateral trade.
The agreement also contains provisions reaffirming both parties’ commitments to international conventions on environment, labour rights, and human rights, ensuring that trade does not undermine environmental or social standards.
Switzerland said the deal strengthens bilateral economic exchanges and positions both partners to deepen cooperation in areas spanning goods, services, and sustainable development.
