Switzerland completes ratification process for India-EFTA trade pact
Deepening the bilateral relationship with India, the Switzerland has completed the ratification process for a landmark trade deal between India and the European Free Trade Association (EFTA) which would reduce trade barriers and significantly open up the Indian market to Swiss exports. Earlier, Iceland, Liechtenstein and Norway have already ratified the trade deal. Further, over the next 15 years, the EFTA States of Iceland, Liechtenstein, Norway and Switzerland are likely to invest $100 billion and create one million jobs in India, through this trade pact. Besides, the Trade and Economic Partnership Agreement (TEPA) which paves the way for long-term cooperation between Indian and EFTA countries is expected to come into force in October. Along with reducing the tariffs, the TEPA will help streamline customs procedures, enhance intellectual property protections and establish a framework for sustainable trade practices.
Over the last 25 year, the Swiss investments in India have grown exponentially, rising from CHF (Swiss Franc) 551 million (around Rs 5,935 crore) in 2000 to CHF 10 billion (Rs 1,07,736 crore) in 2024. Also, more than 330 Swiss companies are present in India in sectors such as engineering, services, precision instruments, chemicals and pharmaceuticals, while Indian companies are present in Switzerland in sectors such as IT, pharmaceuticals and machinery. The Swiss Ambassador to India Maya Tissafi has noted that the Swiss government is partnering with business associations in Switzerland and India and with Indian authorities at the central and state levels. She emphasized the opening of the EFTA Desk in February as one of the measure that facilitates investments from EFTA countries in India.
Further, the multi-sectoral cooperation covers diverse areas, including diplomacy, economy, trade and investment, education, research and innovation, skills development, vocational education and training, development, climate change and disaster-risk reduction, and culture. In October 2023, Swiss-Indian Innovation Platform was launched, which connects Indian Institutes of Technology (IITs) and Swiss technical high schools and universities with leading private companies from both countries to foster strategic innovation partnerships. Swiss companies have been operating in India in the machine, electrical engineering and metals (MEM) and precision sectors, as well as in services, information, communication, software, med-tech and construction, among other sectors.
