The Free Trade Agreement (FTA) between India and the European Free Trade Association (EFTA) — comprising Iceland, Liechtenstein, Norway, and Switzerland — will officially come into force by September 2025, Union Commerce and Industry Minister Piyush Goyal announced during his official visit to Switzerland.
The landmark pact, formally signed on March 10, 2024, is expected to significantly boost bilateral trade and investment flows. Titled the Trade and Economic Partnership Agreement (TEPA), the FTA is poised to bring down tariffs on a wide range of products, enhance market access, and drive long-term strategic cooperation between India and the four-nation bloc.
Lower Duties on Imports, Greater Market Access for India
Once implemented, the agreement will lead to substantial duty cuts on high-value European exports such as Swiss watches, chocolates, premium biscuits, and cut and polished diamonds. India has agreed to eliminate or significantly reduce tariffs on about 80-85% of imports from EFTA nations.
In return, EFTA members have committed to granting near-complete duty-free access — approximately 99% — to Indian goods, including key exports like rice. However, to protect domestic interests, both sides have excluded most agricultural and dairy products from tariff concessions.
Massive Investment Commitment of USD 100 Billion
A standout feature of the agreement is the commitment by EFTA countries to invest USD 100 billion in India over the next 15 years. This is expected to generate employment, facilitate technology transfer, and promote sustainable industrial development across various sectors.
During his visit to Bern, Minister Goyal engaged in bilateral discussions with over a dozen Swiss companies. He noted that Swiss investors have shown considerable interest in sectors such as pharmaceuticals, cybersecurity, and machinery manufacturing.
“There is a great deal of enthusiasm for India. Many companies are eager to explore deeper engagement with our growing economy,” Goyal remarked.
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FTA Approvals and Next Steps
All four EFTA countries have granted parliamentary approval to the agreement. In Switzerland, a public objection period remains open until July 10. The operationalisation of TEPA is expected soon after, likely in September, following the summer recess in European legislative bodies.
Broader Trade Strategy and Upcoming FTAs
Goyal also confirmed that India is actively pursuing trade agreements with other nations and regions, including New Zealand, Chile, Peru, Oman, and the European Union (EU). He hinted that negotiations with the EU may reach a conclusion sooner than previously anticipated, alongside the potential finalisation of a bilateral investment treaty (BIT).
Highlighting India’s robust investment ecosystem under the 11 years of the NDA government, the Minister said free trade agreements are playing a key role in positioning India as a globally preferred investment destination.
To further promote India as a hub for advanced manufacturing, Goyal encouraged Swiss companies to hold board meetings in India to directly witness the country’s economic potential. He also emphasised the opportunity for 100% foreign direct investment (FDI) in machine manufacturing — a strategic move aimed at reducing dependence on imports from China.
With TEPA set to enter into force later this year, both India and EFTA nations are poised to unlock new avenues of economic growth, investment cooperation, and stronger bilateral ties.
