Switzerland clears path for $100 billion EFTA-India trade pact after 16 years of talks
NEW DELHI : Switzerland has officially ratified the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), clearing the final hurdle in a landmark trade deal.
With this move, all four EFTA members, Iceland, Liechtenstein, Norway, and Switzerland, have completed their ratification process, according to a report by PTI. The agreement, in the making for nearly 16 years, is now expected to come into force in October 2025, unlocking $100 billion in investments and creating 10 lakh jobs in India over the next 15 years, the PTI report added.
Swiss Ambassador to India Maya Tissafi called the development a ‘significant milestone’ in Indo-Swiss relations. Speaking to PTI, she noted that the referendum deadline expired without public opposition, signalling tacit approval from the Swiss population.
“At midnight yesterday [Swiss time], the referendum deadline for the EFTA-India TEPA officially expired. With no referendum, the Swiss people have expressed their tacit approval,” said Tissafi.
The agreement is expected to reduce tariffs, streamline customs procedures, strengthen intellectual property protections, and lay the groundwork for sustainable trade between India and EFTA countries.
Some products, especially in goods trade, will face progressive tariff reductions over 10 years, the envoy clarified. TEPA will also enhance the legal and institutional framework for investors, making India more accessible to high-value Swiss industries.
Currently, Switzerland is India’s 12th-largest foreign investor, with cumulative investment rising from CHF 551 million (Rs 5,935 crore) in 2000 to CHF 10 billion (Rs 1.07 lakh crore) in 2024. According to Ambassador Tissafi, India-Switzerland ties have deepened across multiple fronts over the past seven decades, including education, disaster-risk reduction, innovation, and vocational training.
One example is the Swiss-Indian Innovation Platform launched in Bengaluru in October 2023, which connects IITs and Swiss universities with companies on both sides to promote cutting-edge R&D and strategic collaboration.
What’s next?
India’s Commerce Minister Shri Piyush Goyal visited Switzerland last month to fine-tune the operational roadmap. He held talks with Federal Councillor Guy Parmelin and State Secretary Helene Budliger Artieda, focusing on faster investment approvals, skills and vocational training programs, regulatory harmonisation, and innovation-driven partnerships.
The Indian government is also setting up an EFTA Desk, to facilitate smoother market entry and investment flows.