The free trade agreement between India and the EFTA European Block will be introduced from 1 October, said the Minister of Commerce and Industry Piyush Goyal on Saturday (July 19, 2025).
Both parties signed an agreement on trade and economic partnership (TEP) on 10 March 2024.
According to the Pact, India received an investment commitment of $ 100 billion in 15 years from the group and allowed several products such as Swiss watch, chocolate and cut and polished diamonds, at lower or zero duties.
“India-Efta Tepa will come into force from 1 October,” Mr. Goyal said in a post on X.
Members of the European Association of Free Trade (EFTA) are Iceland, Lichtenstein, Norway and Switzerland.
Bloc committed an investment of $ 100 billion – $ 50 billion within 10 years after the agreement and another $ 50 billion in the next five years – which would make it easier to create 1 million direct jobs in India.
It is a first -class arrest agreed in any of the trade trades signed by India.
The commitment is a key substance of an agreement that lasted almost 16 years for India to be in exchange for opening its markets for several products from EFTA.
India’s largest business partner is Switzerland.
India has low volumes of trade with the remaining three countries.
In India’s Pact, it offers 82.7% of its customs lines or product categories that cover 95.3% of EFTA exports, of which more than 80% of imports are gold.
Domestic customers will gain access to high -quality Swiss products such as watches, chocolates, biscuits and hours, at lower prices, because India will determine customs obligations in this goods in 10 years.
In this service sector, the Ministry of Trade previously stated that India had offered EFTA 105 subsectors such as accounting, business services, computer services, distribution and health.
On the other hand, the country ensured obligations in 128 subordinates from Switzerland, 114 from Norway, 107 from Liechtenstein and 110 from Iceland.
Segments where Indian services receive support include legal, audiovisual, research and development, computer, accounting and audit.
The Pact would also provide the opportunity to integrate the EU markets (the European Union) for domestic exporters. More than 40% of global exports in Switzerland are to the EU. Indian companies can look into Switzerland as a base for expanding their market reach to the EU.
India-Efta bidirectional trade was $ 24.4 billion in 2024-25.
Mr. Goyal said when negotiating a tariff with the US: “Our negotiating strategy depends on the national interest. Narendra Modi will never allow the threat to the national interest”.
At the first meeting of Assocham First Managing Committee FY2025-26 in Mumbai, the Minister said the world today recognizes Indian power and added that “the world acknowledges that talent and skills are in India”. And that’s what gives us the bargaining lever effect ”.
He stated that India is negotiating with advanced or developed countries, he said: “We are not trying to make business agreements or focus only on business agreements without competitors. We are looking at the additional economies”.
Later he spoke to reporters on the sidelines of the event, Mr. Goyal said that countries that do not care about their supply chains and ensure that the supply chains are “suffering”.
“… I think India has tremendous domestic demand. Imports come to the country that can be replaced by the development of the domestic industry to scalance for high quality production,” he said.
Finally, Covid taught us a big lesson, said the Minister and added that “the ban on exporting of permanent magnets or fertilizers that has been stored in the last few months has been teaching us a big lesson”.
Published – July 19, 2025 05:28
