India-EFTA Trade Pact to Boost Investment and Market Access from October

India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA), comprising Switzerland, Norway, Iceland, and Liechtenstein will come into force from October 1, 2025. Marking a milestone, the pact introduces legally binding provisions on trade and sustainable development for the first time in an Indian FTA.

Signed on March 10, 2024, the agreement secures EFTA’s pledge of $100 billion in investments over 15 years, with $50 billion to be infused within the first decade and an additional $50 billion in the following five years. The investment is expected to generate one million direct jobs in India. In return, India will lower or eliminate duties on key imports including Swiss watches, chocolates, cut and polished diamonds, machinery, and pharmaceuticals.

Switzerland noted that the agreement enhances legal certainty, improves bilateral economic exchanges, and grants Switzerland improved market access for 94.7% of existing exports (excluding gold). Importantly, the pact also upholds environmental, labour, and human rights obligations, ensuring sustainable and equitable trade practices between India and the bloc.