The Trade & Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) nations, comprising Switzerland, Iceland, Norway, and Liechtenstein, is scheduled to take effect on 1 October 2025. “TEPA will be good for businesses in all five countries and has been welcomed by business communities on both sides,” said Piyush Goyal, minister for commerce, government of India. “The agreement integrates India into the European market and our EFTA partner countries”.
The TEPA with the EFTA was the third major trade deal finalised by the Modi government since early 2022, after signing separate bilateral agreements with the United Arab Emirates (UAE) and Australia. India has since then completed a trade agreement with the UK and is now in the process of completing one with the European Union and the US. However, Switzerland is the biggest trading partner with India in the bloc.
The deal, signed in March 2024, is India’s first free trade agreement to include a legally binding framework on sustainable development, as well as labour and human rights. “At TEPA’s workshop in Delhi, there is a strong presence of Swiss companies across many sectors and states,” added Maya Jaouhari Tissafi, Swiss ambassador to India. “From pharma to engineering, Swiss companies are thriving in India. And, now, with TEPA coming into force on 1 Oct, we expect even more investment & collaboration. For Switzerland and India, the sky is the limit”.
During his last visit to Switzerland in June, Goyal had engaged extensively with Swiss industry leaders across sectors, including biotech and pharma, healthcare, precision engineering, defence, and emerging technologies. In his sectoral roundtables and bilateral meetings, he had highlighted India’s growing economic strength, policy stability, and the government’s commitment to creating a conducive and facilitative ecosystem for global investors, the commerce ministry said. Goyal has also invited Switzerland’s mechanical and precision industries to deepen their engagement with India.
Strategic synergies
“During the visit, Goyal held productive meetings with top leadership from the Swiss government and industry, aimed at reinforcing strategic synergies and unlocking new avenues for trade, investment, and innovation-led growth,” the commerce ministry spokesperson said.
TEPA includes an ‘investment pledge’, whereby the EFTA countries commit to invest $100 billion in India over the next 15 years, with a target of creating 1 million jobs. This is the first time India has secured such a binding investment commitment in a trade agreement.
In addition, EFTA nations will offer nearly 100 per cent market access for non-agricultural Indian products. Tariffs will also be reduced or eliminated on most of India’s processed agricultural products.
India will reduce or eliminate import tariffs on 95.3 per cent of EFTA exports, including high-end products, such as Swiss watches, chocolates, and cut-and-polished diamonds. However, in order to shelter India›s domestic interests, sensitive sectors such as dairy, soya, and coal have been excluded from the agreement.
TEPA will also include provisions for mutual recognition agreements in professional services, such as nursing and architecture, to facilitate the movement of skilled professionals. The agreement also protects India’s interests regarding generic medicines and prevents the ‘ever-greening’ of patents. This agreement would enable India to diversify its imports and reduce its reliance on China, especially for key medical products.