The India–European Free Trade Association (EFTA) trade and economic partnership agreement will come into force on October 1, introducing for the first time legally binding provisions on trade and sustainable development.
As part of the deal, India has secured a $100 billion investment pledge over 15 years, with $50 billion committed in the first decade and another $50 billion in the following five years. The investment is projected to create one million direct jobs, marking the first such binding commitment in any Indian trade agreement.
In return, India has agreed to reduce or eliminate duties on several EFTA exports, including Swiss watches, chocolates, cut and polished diamonds, and other goods. Switzerland confirmed that the pact improves access to the Indian market for 94.7% of its existing exports (2018–2023, excluding gold). These include pharmaceutical products, machinery, optical instruments, and processed agricultural goods.
The agreement enhances predictability in trade and reinforces both sides’ commitments to international treaties on environment, labour, social affairs, and human rights. Switzerland emphasized that the pact ensures neither side’s domestic environmental or labour standards will be compromised.
About EFTA
The EFTA bloc comprises Iceland, Liechtenstein, Norway, and Switzerland. The India–EFTA Trade and Economic Partnership Agreement (TEPA) was signed on March 10, 2024, following years of negotiations.By linking market access with sustainable development, the India–EFTA pact sets a new template for India’s future trade deals. For India, it means fresh investment, job creation, and greater global integration; for EFTA, it secures entry into one of the world’s fastest-growing consumer markets.
