India-EFTA Trade Pact: $100B Investment, 10 Lakh Jobs

Switzerland has officially approved a major trade agreement between India and the European Free Trade Association (EFTA), which includes four countries: Switzerland, Iceland, Liechtenstein, and Norway. This agreement is called the Trade and Economic Partnership Agreement (TEPA) and is expected to start from October.

What Is the Deal About?

The Swiss Ambassador to India, Maya Tissafi, called this a big step in the relationship between Switzerland and India. The deal, which took 16 years to negotiate, aims to:

Reduce trade restrictions
Simplify customs procedures
Open up Indian markets to Swiss goods

$100 Billion Investment and 10 Lakh Jobs

As part of the deal, the EFTA countries will invest $100 billion in India over 15 years, which is expected to create 10 lakh jobs (1 million) in India. The Ambassador called this a “win-win” for both India and the EFTA countries.

Swiss Investments in India Are Growing

Switzerland is already the 12th-largest investor in India. Swiss investments have grown from ₹5,935 crore in 2000 to ₹1,07,736 crore in 2024.

Currently, over 330 Swiss companies are working in India in areas like:

Engineering
Services
Precision tools
Chemicals
Pharmaceuticals

On the other hand, Indian companies are also doing business in Switzerland, especially in:

IT
Pharmaceuticals
Machinery

What’s Next?

The Swiss government now wants to make sure the deal is put into action smoothly. They are working closely with Indian officials and business groups. An EFTA desk was set up earlier this year to help make investments easier for EFTA countries.

Also See: France and UK Shake Hands on Migration, Missiles, and Middle East Peace

Stronger India-Switzerland Ties

Switzerland and India have shared a friendly relationship for 77 years. Apart from trade, the two countries are also working together on important issues like: