India’s landmark Free Trade Agreement (FTA) with the European Free Trade Association (EFTA)—comprising Iceland, Liechtenstein, Norway, and Switzerland—isexpected to come into force by September this year, according to Commerce and Industry Minister Piyush Goyal.
The Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, marks a significant milestone in India’s global trade engagements. Under this agreement, India is set to receive a robust investment commitment of USD 100 billion over the next 15 years from the EFTA bloc.
Once implemented, the agreement will pave the way for reduced or zero tariffs on a range of premium European goods such as Swiss watches, chocolates, biscuits, and cut and polished diamonds, strengthening India’s access to high-quality products from the region. In return, India has agreed to progressively eliminate tariffs on 80–85% of goods originating from EFTA countries, while agricultural and dairy products have been excluded from tariff concessions to safeguard local farmers.
Minister Goyal confirmed that the agreement has been ratified by the Parliaments of all four EFTA nations, with Switzerland’s objection period remaining open until July 10. Final implementation is anticipated after the summer recess in July and August.
In a recent social media update, Minister Goyal shared insights from his engagement with Swiss SME leaders from sectors such as precision engineering, machine tools, and advanced manufacturing. He highlighted India’s evolving manufacturing ecosystem and emphasized the country’s potential to emerge as a regional hub for global markets.
The TEPA is expected to not only deepen India’s trade ties with Europe but also catalyse new investment and innovation partnerships in strategic sectors.
