Swiss Businesses to Gain Market Access, Improved Legal Framework in India Under India-EFTA Trade Deal

New Delhi, March 10: A landmark trade agreement between India and the European Free Trade Association (EFTA) has been signed, marking a significant milestone in Swiss trade policy. The deal, which was finalized after 16 years of negotiations, promises to open up broad market access for Swiss businesses in India, improve the legal framework, and enhance predictability for investors.

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Key Highlights of the Trade Pact

The trade pact between India and EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland, offers several key benefits for both parties. Under the agreement:

• India will lift or partially remove customs tariffs on 95.3% of industrial imports from Switzerland, excluding gold, either immediately or with transition periods.
• Switzerland will gain tariff-free access to the Indian market for selected agricultural products after a transition period of up to 10 years.
• The agreement includes a comprehensive and legally binding chapter on trade and sustainable development, enabling EFTA states to address trade-related sustainability considerations.
• A chapter dedicated to promoting investments in India by companies from EFTA states reflects India's keen interest in attracting additional investment from Switzerland and other EFTA nations.
• EFTA countries have committed to investing USD 100 billion in India over the next 15 years, with USD 50 billion within 10 years of the agreement's implementation and another USD 50 billion in the following five years.

Benefits for Indian Consumers

Indian consumers can expect to benefit from the trade deal in several ways:

• Access to high-quality Swiss products such as watches, chocolates, biscuits, and clocks at lower prices due to the phasing out of customs duties over 10 years.
• Duty concessions on certain production-linked incentive sectors like pharma, medical devices, and processed food.

Excluded Sectors

Certain sectors, including dairy, soya, coal, and sensitive agricultural products, are kept on the exclusion list and will not be subject to any duty concessions.

The India-EFTA trade deal marks a new chapter in economic cooperation between the two regions. By providing greater market access, improving the legal framework, and promoting investments, the agreement is expected to boost trade and economic growth, benefiting businesses and consumers alike. As the deal moves towards ratification, both India and EFTA countries can look forward to a future of enhanced trade and investment opportunities.