Switzerland Ratifies India-EFTA Trade Pact; October Rollout Expected

Switzerland has formally ratified the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), as per the reports. With this, all four EFTA countries, Switzerland, Norway, Iceland, and Liechtenstein have completed the approval process. 

The agreement is expected to come into effect in October 2025.

The trade pact has been under discussion since 2008. It was officially signed in March 2024. The final hurdle was Switzerland’s internal referendum deadline, which passed without public opposition, allowing the deal to proceed.

Investment and Jobs

As part of the agreement, EFTA members are expected to invest $100 billion in India over the next 15 years. The Indian government estimates the creation of 10 lakh jobs through this investment. These projections are tied to market access and regulatory commitments under the deal.

TEPA includes provisions for phased tariff reductions on specific goods over a 10-year period. The agreement also outlines steps for smoother customs procedures, stronger intellectual property frameworks, and structured investor protections.

Implementation 

India is setting up an “EFTA Desk” to manage investment-related processes. Discussions between Indian and Swiss officials have focused on areas like vocational training, regulatory alignment, and investment approvals.

Switzerland is India’s 12th-largest investor. Swiss investments have risen from CHF 551 million (₹5,935 crore) in 2000 to CHF 10 billion (₹1,07,736 crore) in 2024.

Read more: Trump Announces Tariff Letters to 12 Nations: Trade Talks with India in Progress!

Academic and Innovation Collaboration

In October 2023, the Swiss-Indian Innovation Platform was launched in Bengaluru. It connects Indian Institutes of Technology and Swiss universities with companies from both sides to support joint R&D and innovation projects.

More than 330 Swiss companies operate in India, primarily within the engineering, services, precision instruments, chemicals, and pharmaceutical sectors. Conversely, Indian companies have established a presence in Switzerland, focusing on IT, pharmaceuticals, and machinery.

Conclusion

With all approvals secured, the TEPA agreement will formalise and expand India-EFTA economic relations, targeting long-term investment and trade outcomes. 

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