Free Trade Agreement Between India and EFTA to Be Applicable from October 1:

Free Trade Agreement Between India and EFTA to Be Applicable from October 1 The Commerce and Industry Minister, Piyush Goyal, has announced that the free trade agreement between India and the European Free Trade Association (EFTA), made up of Switzerland, Norway, Iceland, and Liechtenstein, will officially be applicable from October 1, 2025.

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The agreement known as the Trade and Economic Partnership Agreement (TEPA) was signed on March 10, 2024, under which the EFTA countries have committed to invest $100 billion in India in 15 years, $50 billion in the first 10 years, and the rest in the next five years. India has secured commitments in 128 sub-sectors from Switzerland, 114 from Norway, 107 from Liechtenstein and 110 from Iceland. In 2024-25, the total trade between India and EFTA countries was $24.4 billion. In return for this, India has agreed to allow several EFTA products, including Swiss watches, chocolates, biscuits, and diamonds, at lower or zero duties. Domestic Customers will have access to superior quality products such as watches, chocolates, and clocks at lower prices. The agreement took 16 years to conclude. Among the EFTA nations, Switzerland is India’s biggest trading partner, while India has low trading volumes with the rest of the three.

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As per the commerce ministry, India has given 105 sub-sectors to the EFTA, including IT, accounting, healthcare, and business services. The agreement also provides opportunity for Indian exporters to integrate into European Union (EU) markets. Indian businesses can consider using Switzerland as a way to enhance their presence in Europe, as more than 40% of Switzerland's service exports go to the EU.