Switzerland has officially completed the ratification process for a landmark trade partnership between India and the European Free Trade Association (EFTA).
Swiss Ambassador to India Maya Tissafi conveyed that the Trade and Economic Partnership Agreement (TEPA) is expected to come into force in October.
What does it mean?
Ambassador Tissafi described Switzerland’s ratification of the trade pact as a “significant milestone” in the country’s bilateral relationship with New Delhi.
The agreement, signed in March after nearly 16 years of negotiations, is poised to reduce trade barriers and streamline customs procedures by opening up the Indian market to Swiss exports.
Jobs will be created by the $100 investment
Under the mega trade pact, the EFTA States (Iceland, Liechtenstein, Norway, and Switzerland) plan to invest $100 billion in India over the next 15 years.
This investment is expected to create one million (10 lakh) jobs in the country, she said, adding that this will be a “win-win situation” for all countries involved.
Growing Swiss investment in India
As per current data compiled by PTI, Switzerland stands as the 12th-largest investor in India.
Swiss investments in India have grown exponentially over the last 25 years, rising from ₹5,935 crore in 2000 to ₹1,07,736 crore in 2024, the envoy said.
More than 330 Swiss companies are active in India across diverse sectors such as engineering, services, precision instruments, chemicals and pharmaceuticals.
Indian companies are also present in Switzerland, particularly in sectors such as IT, pharmaceuticals and machinery.
Focus on successful implementation
Tissafi said the Swiss government’s immediate priority would be successfully implementing the TEPA for Swiss companies looking to invest in India.
“To this end, we are partnering with business associations in Switzerland and India and with Indian authorities at the central and state levels,” she said.
The establishment of the EFTA desk in February is one such initiative aimed at easing investments from EFTA countries, news agency PTI reported.
Deepening India-Switzerland relationship
Beyond the TEPA, the bilateral relationship between India and Switzerland has evolved over the last 77 years after the two countries signed the Treaty of Friendship.
The relationship between the two countries is on an upward trajectory, the envoy said, adding that they are cooperating in various domains, from the signing of the TEPA last March to implementing projects in fields like climate change, disaster-risk reduction and environment.
Another notable advancement in the partnership between the two countries is also the launch of the Swiss-Indian Innovation Platform in Bengaluru in October 2023, she said.
The platform connects Indian Institutes of Technology (IITs) and Swiss technical high schools and universities with leading private companies from both countries to foster strategic innovation partnerships, the news agency reported.
