How effective is Efta deal thus far: Swiss prez starts India visit on Oct 5

India and the four-member European Free Trade Association (Efta) will mark the first anniversary of their free-trade agreement with Swiss Confederation President Guy Parmelin’s three-day visit to New Delhi on Monday.

 

It is likely to be one of the last overseas visits of Parmelin in his current role, as he is set to retire from the government by the end of the year. 

 

During the Swiss President’s visit from October 5 to 7, India and EFTA members will review the implementation of the agreement and chart the way forward. Efta comprises Liechtenstein, Norway, Iceland, along with Switzerland.

 

Since the India-Efta Trade and Economic Partnership Agreement (TEPA) was operationalised, India’s exports to the four-nation bloc have declined — particularly to Switzerland, its largest trading partner in the bloc. Meanwhile, India’s imports, mostly of gold from Switzerland, have increased. However, government sources pointed out that several collaborations have been in the works since TEPA was inked.

 

On October 1, Commerce and Industry Minister Piyush Goyal said that “a notable outcome” in the last 12 months “is that India’s exports of motor cars and other motor vehicles, heavy water, and moulding patterns have grown significantly”. Sources said discussion and collaborations are going on for more investment in the coming months. 

 

Following the deal’s operationalisation, “sustained outreach initiatives and high-level engagements were undertaken, in coordination with India’s missions abroad, embassies of other countries, trade bodies and export promotion councils, to promote the agreement and translate its provisions into concrete trade and investment partnerships,” an official said.

 

In the last 12 months, India and Switzerland have held discussions on issues such as regulatory cooperation, addressing non-tariff barriers, including on agricultural and marine products, and promoting business linkages, he added. 

 

Goyal had visited Switzerland in June 2026, where he discussed with Parmelin avenues for expanding cooperation in pharmaceuticals, biotechnology, innovation, research, education, technology, civil nuclear energy, and research and development.

 

A business delegation will accompany Parmelin on his upcoming India visit. On October 6, Prime Minister Narendra Modi and Parmelin will review progress in bilateral cooperation across trade and investment, science, technology and innovation, and mobility. The next day, Parmelin will attend the ‘Prosperity Summit 2026’ to commemorate TEPA’s first anniversary. The summit will bring together stakeholders from government and business to review the implementation of the agreement and chart the way forward. 

 

The India-Efta trade deal was signed on March 10, 2024, and came into force on October 1, 2025. The negotiations on the trade pact were held over 16 years, having started in October 2008. When signed in March 2024, Switzerland and the other Efta members became the first European partners to conclude an FTA with India. India established a dedicated Efta desk. Modi is slated to travel to Brussels, the European Union headquarters in mid-December, where the two sides are to sign the final India-EU trade agreement.

 

The India-Efta trade deal has a binding commitment to facilitate $100 billion in foreign direct investment and create one million direct jobs in India over 15 years. Goyal said earlier this week that the India-Efta trade pact provides market access on 92.2 per cent of tariff lines covering 99.6 per cent of India’s exports, including 100 per cent of non-agricultural products, while India has safeguarded sensitive sectors such as dairy, soya, coal and sensitive agricultural products.

 

Government sources said Parmelin is a strong advocate of India-Switzerland engagement as well as the trade deal. In his previous role as the Federal Councillor for Economic Affairs, Education and Research, Parmelin contributed substantially to the negotiations and was instrumental in the finalisation of the agreement, they said. According to government data, since TEPA’s entry into force, investment from Switzerland into India increased by $202.10 million, from $11,114.32 million till September 2025 to $11,316.42 million till March 2026.

 

Last year, Goyal described TEPA as the first trade agreement to incorporate a firm investment commitment, ensuring a balancing interests and fairness between partners. He said the entire population of the Efta countries is less than that of Mumbai, yet the partnership is driven by the “big heart and tremendous potential” of the Efta region. He also recalled the legacy of Swiss companies like ABB and Nestlé in India, which have a high price-to-earnings ratio in India.

 

The trade pact identified laying sector specific road maps and deepening exports in engineering, pharmaceuticals and med-tech, food processing, textiles and marine sectors. Efforts will also be made to help India’s small and medium enterprises with skills modules on quality, packaging and sustainability. It said market access and mobility improvements would open doors in Efta countries for Indian farmers, and for specialty coffees, marine products and selected fresh and processed foods. It was expected to reduce duplicative testing and compliance costs for India’s SMEs. India would hope for greater investments from Efta members in pharmaceuticals, medtech, green technology and energy, precision engineering and the blue economy. The challenge for governments, industry and regulators remains creating early success stories out of the trade pact.

 

Trade talks

 

• India-EFTA Trade and Economic Partnership Agreement (TEPA) came into force on Oct 1, 2025
• Swiss investment in India has risen by $202.1 mn after EFTA since then
• India’s imports from EFTA bloc have increased in the last year, especially that of gold from Switzerland
• India’s exports to EFTA nations, meanwhile, have declined
• Piyush Goyal recently said TEPA increased India’s exports of motor vehicles, heavy water and moulding patterns
• India & EFTA nations will review TEPA performance so far during Swiss President Guy Parmelin’s upcoming New Delhi visit