India-EFTA Free Trade Agreement to Take Effect from October 1

4 Sep 2025 , 12:14 PM

The free trade agreement (FTA) between India and the four-nation European Free Trade Association (EFTA) bloc will come into effect on October 1, with legally binding provisions on trade and sustainable development for the first time. EFTA, comprising Iceland, Liechtenstein, Norway and Switzerland, signed the Trade and Economic Partnership Agreement (TEPA) with India on March 10, 2024.

Under the pact, India secured a USD 100 billion investment commitment over 15 years USD 50 billion in the first decade and another USD 50 billion in the following five years. The investment is expected to generate one million direct jobs in India. In return, India agreed to lower or remove duties on products including Swiss watches, chocolates, cut and polished diamonds, and other goods.

Switzerland said the deal provides greater legal certainty and predictability in bilateral trade while improving market access for 94.7% of Swiss exports to India (based on 2018–2023 data, excluding gold).

The list of exports that benefit includes pharmaceuticals, machinery, optical instruments, watches and processed agricultural goods. The agreement also reaffirms both sides’ commitment to international standards, covering obligations in trade, environment, social affairs, and human rights.

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