Context:
India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein—will come into force by September 2025, according to Commerce and Industry Minister Piyush Goyal.
Key Highlights:
- TEPA Agreement Timeline:
- Signed on March 10, 2024.
- Now ratified by all four EFTA countries’ parliaments.
- Switzerland’s citizen objection period ends on July 10, post which implementation is expected in September.
- Historic Investment Commitment:
- The deal includes a $100 billion investment commitment over 15 years from EFTA nations.
- This is the first time India has incorporated investment commitments into a free trade agreement.
- Dedicated Investment Facilitation Desk:
- India has set up a dedicated EFTA desk under Invest India to assist EFTA companies in investing in India.
- Sectoral Focus & Business Engagement:
- Sectors showing strong investment interest: biotech, cybersecurity, healthcare, and machinery manufacturing.
- Goyal is on a 4-day visit to Switzerland and Sweden with a 90-company Indian business delegation.
- He met with over a dozen Swiss companies; several are exploring pilot launches in the Indian market.
- Bilateral Trade Outlook:
- Goyal emphasized the trade pact will bring policy predictability, stability, and continuity for investors.
- A 100-company Swiss delegation visited India in February 2025, showing growing bilateral interest.
India’s Global Trade Strategy Update:
- India is accelerating talks with the European Union (EU) and United States (US).
- EU deal may conclude “faster than expected”.
- With the US, India is ready to finalize a deal based on low-hanging fruits—i.e., areas with mutual consensus.
- Other active trade negotiations:
- New Zealand, Chile, Peru, Oman.
- India has already signed an early harvest deal with Australia.
