Switzerland Ratifies India-EFTA Deal, Paving Way for Big Investments

Switzerland has finalized the ratification of the India-EFTA Trade and Economic Partnership Agreement (TEPA), paving the way for the agreement to enter into force in October. The TEPA was signed in March 2024 after negotiations that took 16 years, is going to substantially reduce trade barriers as well as increase investments between India and the four European Free Trade Association (EFTA) partners, Switzerland, Iceland, Liechtenstein, and Norway.

Indian-Swiss relations have seen a "historic milestone" with the ratification by the Swiss federal parliament, as Indian ambassador to Switzerland Rakesh Arora put it. The deal is believed to unlock $100 billion of investment and 10 lakh jobs in India over the next 15 years, said Tissafi.

The ratification came after the referendum period for Switzerland expired without public display of opposition, an indication of tacit consent by Swiss citizens. Iceland, Liechtenstein, and Norway were already parties to the agreement.

Also Read: India Boosts Inland Waterways with Rhenus Logistics Partnership

Tissafi highlighted that TEPA is not just about cutting tariffs, but liberalizing customs procedures, improving intellectual property rights, and instituting sustainable trade practices. She also specified that the Swiss government would closely cooperate with Indian authorities and business associations to ensure effective implementation.

Switzerland is now India's 12th-largest investor, with the investment growing from CHF 551 million in 2000 to CHF 10 billion (about ₹1.08 lakh crore) in 2024. More than 330 Swiss companies have operations in India in engineering, pharma, and services, and Indian companies have been established in Switzerland in IT, machinery, and pharma.

Tissafi also emphasized the depth of bilateral cooperation in the last 77 years, with two-way cooperation in education, innovation, climate, and disaster risk reduction. A recent example is the Swiss-Indian Innovation Platform inaugurated in Bengaluru in October 2023.