India-EFTA Trade Pact to Take Effect on October 1: Switzerland

Quick Summary

• India and the European Free Trade Association (EFTA) signed the Trade and Economic Partnership agreement (TEPA) on March 10, 2024.
• The agreement will come into force on October 1, 2025.
• EFTA consists of four European nations: Iceland, Liechtenstein, Norway, and Switzerland.
• TEPA includes legally binding provisions on trade and sustainable growth for the first time in India’s free trade agreements.
• EFTA pledged $100 billion in investment over 15 years ($50 billion within the first 10 years and another $50 billion in five more years), expected to create one million direct jobs in India.
• Indian duties will be lowered or eliminated for products like Swiss watches, chocolates, optical instruments, pharmaceuticals, processed agricultural goods, machinery, and cut/polished diamonds.
• Switzerland noted that the agreement improves market access certainty for bilateral exchanges while ensuring compliance with international environmental laws and labor legislation.

Indian Opinion Analysis
The TEPA marks a meaningful milestone in India’s approach to international trade agreements by incorporating legally binding commitments related to sustainability alongside economic goals-a step toward balancing growth with global standards of labor rights and environmental protection. The projected $100 billion investment from EFTA coudl profoundly benefit India’s economy by generating one million direct jobs across various industries over a span of 15 years.

India’s concessions on duties may improve consumer access to high-value imported products like Swiss watches while strengthening supply chains involving pharmaceuticals or machinery parts critical for domestic infrastructure expansion efforts. Additionally, guaranteeing compliance with international norms reflects India’s growing role as a responsible global economic player-a move likely aimed at enhancing its credibility among developed economies.For further insight into this groundbreaking pact: Read More