Trade agreement between India, four-nation EFTA to kick in from Oct

Deal with European bloc was signed in March 2024; it's projected to get India $100 bn foreign direct investment

A trade agreement between India and the four-nation European Free Trade Association (EFTA) will come into force in October 2025, according to an official statement.

 

The deal may be instrumental in India attracting $100 billion in foreign direct investment in 15 years and the creation of one million jobs in the country. EFTA countries will get duty-free market access in India for Swiss watches, chocolates and other products.

 

EFTA comprises Iceland, Switzerland, Norway, and Liechtenstein. The Trade and Economic Partnership Agreement (TEPA) was signed in March last year, but procedural formalities in the four nations have delayed the implementation of the deal.

 

“At midnight yesterday (Swiss time), the referendum deadline for the EFTA-India TEPA officially expired. With no referendum, the Swiss people have expressed their tacit approval of the agreement. Swiss democracy in true action! This follows the approval by the Council of States on 3 December 2024 and the National Council on 20 March 2025. With all domestic procedures now completed, nothing stands in the way of #TEPA entering into force,” said Maya Tissafi, Switzerland’s ambassador to India, in a social media post. 

 

“The next step will see the contracting parties deposit their instruments of ratification in Oslo, with Norway serving as the depositary state, as is customary in such agreements. Once the three-month waiting period provided for in the agreement has elapsed, TEPA will come into force in October 2025,” said Tissafi.

 

India exported goods worth $1.96 billion to EFTA nations in FY25 and imported goods worth $22.45 billion.