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The Swiss government has submitted its proposed free trade agreement with India to parliament, it said on Thursday, moving closer to a deal that could open up the world's most populous country to Swiss exports.

The agreement between India and the European Free Trade Association (EFTA) - which has also has Iceland, Norway and Liechtenstein as members - is a "significant milestone" in Swiss trade policy, the government said.

Under the agreement, India will lift import tariffs on industrial products from the four countries in return for investment of $100 billion over 15 years.

The deal, which was signed in March, requires parliamentary approval before becoming effective. The Swiss parliament is expected to debate the treaty in the upcoming spring and winter sessions, the government said.

The treaty, which has followed 16 years of negotiation, will reduce tariffs on nearly 95% of Swiss products that are exported to India.

"India is now the world's most populous country. In particular, the growing middle class means that there is significant potential for growth," the government said.

"When the agreement comes into force... This will strengthen the competitiveness of Swiss exports in India," it added.

Although the Indian market is potentially huge, Swiss exports to the country are currently tiny - making up only 0.7% of Swiss sales abroad in 2023, according to information from the Federal Customs Office.