A first-of-its-kind pledge agreed upon in any of the trade deals signed so far by India carries “legally blinding provisions” and will come into force from October 1, 2025, said Switzerland on Wednesday.
"For the first time, India has laid down legally binding provisions on trade and sustainable development in a free trade agreement," it said in a statement.
The free trade agreement between India and four-European nation bloc EFTA comprising Iceland, Liechtenstein, Norway, and Switzerland, which was signed on March 10, 2024, comprises an investment commitment of USD 100 billion that India will receive over 10 years, directly facilitating one million jobs in the country.
Under the Trade and Economic Partnership Agreement (TEPA), the bloc committed to an investment of USD 100 billion – USD 50 billion within 10 years after the implementation of the agreement and another USD 50 billion in the next five years.
Also Read: India-EFTA trade pact implementation from Oct 1: Piyush Goyal
In return, India will allow in several products such as Swiss watches, chocolates and cut and polished diamonds at lower or zero duties.
Switzerland said that the agreement increases legal certainty and predictability for bilateral economic 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 include pharmaceutical products, machinery, optical instruments, watches and processed agricultural products.
The pact, it said, also contains a provision in which the contracting parties confirm their rights and obligations in the areas of trade, environment, social affairs and human rights under other international agreements.
"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.
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