Switzerland ratifies $100B EFTA-India trade pact, set for October 2025, targeting $100B in investments and 1M jobs. Explore the deal’s impact on India’s economy.
New Delhi, July 11, 2025 – Switzerland has officially ratified the $100 billion India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), a landmark deal signed on March 10, 2024, after nearly 16 years of negotiations. Set to take effect in October 2025, the agreement, involving EFTA members Iceland, Liechtenstein, Norway, and Switzerland, aims to drive $100 billion in investments to India over 15 years, potentially creating 1 million jobs and fostering trade, innovation, and sustainability.
EFTA-India Trade Pact: A Milestone in Switzerland-India Relations
On July 10, 2025, Switzerland completed the ratification process after its referendum deadline passed without objections, signaling public support. Iceland, Liechtenstein, and Norway had already ratified the pact, clearing the way for its implementation. Swiss Ambassador Maya Tissafi called the ratification a “significant milestone” for bilateral ties, emphasizing its potential to boost trade and innovation. “This agreement strengthens our partnership with India, opening new opportunities for businesses and communities,” she told PTI.
Key Features of the EFTA-India Trade Pact
The TEPA commits EFTA nations to invest $100 billion in India over 15 years, targeting sectors like pharmaceuticals, manufacturing, and renewable energy. In return, India will offer tariff concessions on Swiss products, including watches, chocolates, and cut and polished diamonds, with some reductions phased over 10 years. The agreement streamlines customs procedures, enhances intellectual property protections, and promotes sustainable trade practices, aligning with India’s green growth goals and EFTA’s environmental standards. For example, it encourages collaboration in clean technology, pairing Swiss expertise with India’s market potential.
In FY25, India exported $1.96 billion to EFTA nations while importing $22.45 billion, highlighting the trade imbalance the TEPA aims to address. An EFTA Desk, established in February 2025, will assist investors with regulatory guidance and investment opportunities, facilitating market entry for Swiss firms. Visit the Indian Ministry of Commerce for details.
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India’s Economic Vision and Job Creation
Commerce Minister Piyush Goyal has described the TEPA as a “game-changer” for India’s economy. “This deal will attract significant investment and create opportunities for millions, especially our youth,” Goyal said at a Mumbai trade summit. The projected 1 million jobs span manufacturing, IT, and services, supporting India’s “Make in India” initiative. The agreement also enhances India’s access to EFTA’s advanced technologies, fostering innovation and competitiveness.
Swiss investments in India have grown significantly, from CHF 551 million (approx. Rs 5,935 crore) in 2000 to CHF 10 billion (Rs 1,07,736 crore) in 2024, making Switzerland India’s 12th-largest investor. The TEPA is expected to accelerate this trend, with companies like Nestlé and Rolex poised to benefit from reduced tariffs.
EFTA-India Trade Pact: Challenges and Opportunities Ahead
While the TEPA holds immense promise, its success depends on effective implementation. The $100 billion investment and 1 million job projections are ambitious and subject to global economic conditions and domestic reforms. Indian industries, particularly agriculture and dairy, have expressed concerns about competition from EFTA imports, though phased tariff reductions aim to mitigate these risks. Swiss State Secretary Helene Budliger Artieda emphasized the need for reduced regulatory red tape in India to attract investments, a point echoed during Goyal’s June 2025 visit to Switzerland.
The Swiss-Indian Innovation Platform, launched in Bengaluru in October 2023, further strengthens ties by connecting Indian Institutes of Technology with Swiss institutions for strategic partnerships in innovation.
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EFTA-India Trade Pact: A Global Trade Milestone
The TEPA positions India as a key player in global trade, complementing recent deals with the UAE and Australia. For EFTA nations, it offers access to India’s 1.4 billion-consumer market. As October 2025 approaches, both sides are preparing through trade fairs and investor summits to maximize the pact’s benefits.