Introduction
In a significant milestone for global trade and bilateral cooperation, Switzerland has ratified the India-EFTA Trade and Economic Partnership Agreement (TEPA), a landmark deal poised to transform the economic relationship between India and the four European Free Trade Association (EFTA) member states, Switzerland, Iceland, Liechtenstein, and Norway.
Signed in March 2024 after nearly 16 years of negotiations, the agreement is now on track to come into force in October 2025, following the completion of ratification procedures by all four EFTA countries. The Swiss ratification completed without triggering a national referendum signals broad public and political support for deepening ties with India.
What Is TEPA?
TEPA is a comprehensive trade and economic partnership aimed at reducing trade barriers, enhancing cross-border investments, and promoting sustainable development. The deal offers a framework that includes:
- Tariff reductions and eliminations on goods from both sides.
- Streamlined customs procedures to simplify trade logistics.
- Enhanced intellectual property protections for innovation and digital trade.
- Provisions for sustainable development, including labor rights and environmental safeguards.
$100 Billion Investment and 1 Million Jobs
Swiss Ambassador to India, Maya Tissafi, described the ratification as a “significant milestone” and projected that TEPA would unlock $100 billion in investments into India and create 1 million jobs over the next 15 years.
“This is more than a trade deal,” said Tissafi. “TEPA lays the foundation for long-term strategic cooperation that spans economic, environmental, and innovation domains.”
To facilitate investments, Switzerland has already launched an EFTA Desk in India (opened in February 2025), aimed at supporting companies looking to expand operations across both geographies.
India-EFTA: A High-Value Strategic Alignment
The EFTA bloc represents a high-income market with a combined GDP of over $1.3 trillion and significant outward foreign direct investment (FDI). While trade volumes between India and EFTA have historically been modest compared to India’s trade with the EU or the US, the gap presents untapped potential.
Key sectors expected to benefit from TEPA include:
- Pharmaceuticals and biotechnology
- Engineering and precision instruments
- Green and clean energy technologies
- Digital services and fintech
- Education and research collaboration
India, with its large and growing market, skilled workforce, and emerging industrial base, offers a compelling growth story for Swiss and EFTA companies. Conversely, EFTA nations offer advanced technologies, capital, and access to global value chains a strategic complement to India’s growth agenda.
Swiss Investments in India: Rapid Growth
Switzerland already ranks as the 12th-largest investor in India, with investment stock growing from CHF 551 million (approx. INR 5,935 crore) in 2000 to CHF 10 billion (approx. INR 1.07 lakh crore) by 2024. Over 330 Swiss companies now operate in India, spanning pharmaceuticals, chemicals, engineering, and services.
Notably, Indian firms also maintain a growing footprint in Switzerland in sectors such as IT, pharmaceuticals, and machinery, further reinforcing bilateral flows.
Implementation: Gradual but Strategic
While the agreement comes into force in October 2025, Ambassador Tissafi emphasized that trade liberalization will be phased in, particularly for sensitive goods. Certain product categories will see tariff reductions gradually over a 10-year period, allowing industries time to adjust.
TEPA is designed not only to accelerate trade but also to foster sustainable practices, including commitments on environmental protection, labor standards, and climate-friendly trade mechanisms aligning with global ESG priorities.
Strategic Collaboration in Innovation and Education
Beyond trade and investment, the TEPA framework aligns with Switzerland and India’s broader cooperation in innovation, education, and skills development. A notable example is the Swiss-Indian Innovation Platform launched in Bengaluru in October 2023, linking Indian Institutes of Technology (IITs) with Swiss research universities and global businesses.
The partnership reflects shared goals in advancing vocational education, digital transformation, climate resilience, and science-based entrepreneurship reinforcing people-to-people and knowledge-driven diplomacy.
Looking Ahead: A Transformational Agreement
TEPA is among India’s most advanced trade agreements with a developed economy bloc. It is also EFTA’s first free trade agreement with a G20 country marking a strategic shift toward engagement with large emerging markets.
For India, the deal comes at a time when it is seeking diversified trade partners and increased foreign investment to drive manufacturing, digital infrastructure, and clean energy goals under programs like ‘Make in India’ and ‘Viksit Bharat 2047’.
For EFTA members, TEPA provides a stable, rule-based framework to access one of the fastest-growing economies in the world, while promoting values-aligned, responsible trade.
The ratification of the India-EFTA TEPA by Switzerland is not just a bureaucratic step, it is a geoeconomic signal. It reflects mutual confidence between India and Europe’s most advanced economies in building a modern, resilient, and inclusive trade relationship.
As implementation begins and the agreement takes root, both sides now have a historic opportunity to shape a future defined by shared prosperity, innovation, and strategic alignment.
