New Delhi, 21st July 2025: India and the European Free Trade Association (EFTA) will implement their Free Trade Agreement (FTA) starting October 1. This was announced by Union Minister of Commerce and Industry Piyush Goyal on Saturday. Both sides had signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.
Under this agreement, India has secured an investment commitment of USD 100 billion over 15 years from EFTA nations — Iceland, Liechtenstein, Norway, and Switzerland.
As part of the FTA, several luxury goods such as Swiss watches, chocolates, and cut and polished diamonds will enter India at reduced or zero import duties, making these products significantly cheaper than before.
10 Lakh Jobs Expected
The FTA includes a commitment to invest USD 100 billion in India over the next 15 years — USD 50 billion in the first 10 years and an additional USD 50 billion in the following 5 years. This is expected to generate direct employment for over 10 lakh (1 million) people in India. It is being described as India’s best trade deal to date.
Minister Goyal mentioned that it took nearly 16 years to finalize this agreement and that it holds immense significance as it opens the Indian market for various high-quality EFTA products. Among the EFTA countries, Switzerland is India’s largest business partner, while trade volumes with the other three are relatively lower.
Currently, India imposes up to 82.7Percent tariffs on goods imported from EFTA, including over 80% of gold imports. With the new agreement, Indian consumers will now be able to access premium goods like watches, chocolates, biscuits, and high-quality space-related products at lower prices.
Opportunities for Indian Exporters
This agreement also opens up new opportunities for Indian exporters, offering them greater access to European markets. Over 40Percent of Switzerland’s service exports go to the European Union, and with this agreement, Indian companies can use Switzerland as a gateway to access the EU.
It is notable that the bilateral trade between India and EFTA stood at USD 24.4 billion in the 2024–25 financial year.
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