India, EFTA commerce pact to come back into power from October 1: Switzerland

The free commerce settlement between India and four-European nation bloc EFTA, which can come into power from October 1, can have legally binding provisions on commerce and sustainable growth, Switzerland stated on Wednesday (September 3, 2025).

“For the first time, India has laid down legally binding provisions on trade and sustainable development in a free trade agreement,” it stated in a press release.

The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.

The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024.

Under the pact, India has obtained an funding dedication of $100 billion in 15 years from the grouping whereas permitting a number of merchandise reminiscent of Swiss watches, sweets and reduce and polished diamonds at decrease or zero duties.

The bloc dedicated an funding of $100 billion — $50 billion inside 10 years after the implementation of the settlement and one other 450 billion within the subsequent 5 years — which might facilitate the creation of 1 million direct jobs in India.

This is a first-of-its-kind pledge agreed upon in any of the commerce offers signed by India to date.

Switzerland stated that the settlement will increase authorized certainty and predictability for bilateral financial exchanges.

“It also improves access to the Indian market for Swiss goods and services. India grants Switzerland improved market access for 94.7 per cent of existing exports (2018-2023, excluding gold),” it added.

These embody pharmaceutical merchandise, equipment, optical devices, watches and processed agricultural merchandise.

The pact, it stated, additionally accommodates a provision wherein the contracting events affirm their rights and obligations beneath different worldwide agreements.

These embody agreements within the areas of commerce, setting, social affairs and human rights.

“This is to ensure that neither the environmental and labour legislation of the partner countries nor international environmental and social laws are violated in connection with the agreement,” it added.