India’s Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) is on track for implementation by the end of 2025, as confirmed by Commerce and Industry Minister Piyush Goyal.
The agreement, signed on March 10, 2024, between India and the four EFTA nations—Switzerland, Iceland, Liechtenstein, and Norway—represents a major milestone in trade relations between the two parties.
The pact is currently progressing through the ratification process. Recently, the Swiss Council of States approved the agreement, and the next step involves approval from Switzerland’s National Council. Minister Goyal noted that there is significant political support for the partnership, and the agreement is expected to come into effect by autumn 2025.
A key component of the TEPA is a USD 100 billion investment commitment from EFTA, which will be spread over a 15-year period. This investment will be rolled out in two phases, with USD 50 billion allocated in the first decade and the remaining USD 50 billion in the following five years. The investment is expected to create one million direct jobs in India.
The agreement will also benefit Indian consumers by reducing customs duties on a variety of premium Swiss products, including watches, chocolates, and biscuits, over a ten-year period. The TEPA includes a safeguard mechanism allowing India to suspend duty concessions if the promised investments do not materialize. As part of the implementation process, India will undergo Cabinet authorization, while EFTA member states will need to secure parliamentary approval. Minister Goyal also emphasized India’s active engagement in trade negotiations with other partners, stressing that future agreements must be fair, balanced, and in line with India’s national interests.
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