India-EFTA Free Trade Agreement: A Sweet Deal with a Dash of Swiss Chocolate
On October 1, 2025, India and the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein—officially launched their Trade and Economic Partnership Agreement (TEPA). This landmark pact is poised to reshape trade dynamics between the two regions, offering economic benefits, job creation, and a touch of Swiss indulgence.
What’s in the Deal?
· Tariff Reductions: The agreement secures tariff reductions on 92.2% of EFTA's tariff lines for Indian exports, and India will offer concessions on 82.7% of tariff lines covering 95.3% of EFTA exports.
· Investment Commitment: EFTA countries have pledged $100 billion in foreign direct investment over the next 15 years, potentially creating up to 1 million jobs in India.
· Market Access: Indian exporters will gain broader access to EFTA markets, promoting Indian goods and services abroad.
· Consumer Benefits: Indian consumers can expect reduced prices for several Swiss products, including wines, chocolates, apparel, and watches, due to lowered import tariffs.
Strategic Significance
This agreement aligns with India's broader trade strategy, complementing existing deals with countries like the UAE, Australia, and the UK. It also positions India as a key partner for EFTA nations seeking to enhance their presence in the Indian market.
In conclusion, the India-EFTA Free Trade Agreement marks a significant step in strengthening economic ties between India and the EFTA countries. With mutual benefits spanning trade, investment, and consumer goods, this partnership is set to flourish in the coming years.