Switzerland ratifies India-EFTA Trade Pact

Context:

Switzerland officially ratified the India-EFTA Trade and Economic Partnership Agreement (TEPA). This marks the final step before the agreement comes into force in October 2025. The pact had been signed in March 2024, after nearly 16 years of negotiation.

Who is EFTA?

EFTA (European Free Trade Association) is a bloc of four non-EU European countries:
- Switzerland
- Norway
- Iceland
- Liechtenstein
These countries are economically advanced and seek trade pacts independently of the European Union.
TEPA (Trade and Economic Partnership Agreement) is a comprehensive trade deal aimed at:
- Reducing tariff and non-tariff barriers
- Facilitating investment
- Creating jobs
- Easing customs procedures
- Opening Indian markets to EFTA countries, and vice versa
It is not a basic free trade agreement—it includes commitments on investment flows, services, sustainability, and regulatory cooperation.

Economic Benefits for India

Massive Investment Inflow: The EFTA countries, especially Switzerland, have pledged $100 billion investment into India over the next 15 years.This is not just trade-related—it includes FDI in infrastructure, manufacturing, services, etc.
Job Creation: The pact is expected to generate 1 million (10 lakh) new jobs in India across sectors.Sectors likely to benefit include pharmaceuticals, engineering goods, precision instruments, IT, and green technology.
Boost to 'Make in India': Investment will strengthen domestic supply chains, especially in high-skill sectors.Indian companies can also access EFTA markets with zero or lower tariffs.

Switzerland’s Existing Investment in India

Switzerland is already India’s 12th largest investor.
Swiss investment has grown from Rs5,935 crore in 2000 to Rs1,07,736 crore by 2024.
Over 330 Swiss companies operate in India, across sectors like:
- Engineering
- Pharmaceuticals
- Precision manufacturing
- Services