India and the EFTA trade pact will start on October 1. Switzerland shared this news. The free trade agreement between India and the EFTA, which includes Iceland, Liechtenstein, Norway, and Switzerland, will become active on October 1. This pact has legally binding rules on trade and sustainable development, said Switzerland.
For the first time, India has included legally binding provisions on trade and sustainable development in a free trade agreement, said Switzerland in a statement.
The EFTA members are Iceland, Liechtenstein, Norway, and Switzerland.
India and EFTA signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under this agreement, India will get an investment of USD 100 billion over 15 years from the EFTA group. This includes allowing products like Swiss watches, chocolates, and cut and polished diamonds to be imported with lower or zero duties.
The EFTA group has committed to investing USD 100 billion in total. This includes USD 50 billion within 10 years after the pact takes effect and another USD 50 billion in the following five years. This investment is expected to create one million direct jobs in India.
This is the first time India has made such a big investment pledge in any trade deal it has signed so far. Switzerland said that the agreement increases legal certainty and predictability for trade between the two countries.
Switzerland also said the pact improves access to the Indian market for Swiss goods and services. India will allow 94.7% of existing Swiss exports (from 2018 to 2023, excluding gold) into the Indian market.
These include pharmaceutical products, machinery, optical instruments, watches, and processed agricultural products.
