Switzerland’s Federal Council has approved the trade agreement between India and the European Free Trade Association (EFTA) and forwarded it to Parliament for ratification.
The deal, signed in March between India and EFTA members Norway, Switzerland, Iceland, and Liechtenstein, aims to expand trade in areas such as pharmaceuticals, manufacturing, technology, and machinery. The four European nations plan to invest $100 billion in India over the next 15 years as part of the agreement.
Each EFTA member must ratify the pact before its implementation. The Swiss Parliament is expected to debate the deal during its winter or spring sessions, according to a government statement.
“The agreement strengthens the competitiveness of Swiss exports in the world’s most populous country,” the Federal Council said, describing the pact as a milestone in Switzerland’s trade relations with India.
The deal seeks to eliminate customs duties on nearly 98% of Indian imports to EFTA countries. Additionally, 94.7% of Swiss exports to India will benefit from tariff relief, in some cases after a transitional period.
Switzerland and other EFTA states are the first European partners to secure a free trade agreement (FTA) with India after 16 years of negotiations.
The deal also includes a chapter on investment promotion, marking the first time EFTA states have committed to boosting investment in India through job creation initiatives.
India, in turn, has pledged to foster a favourable investment climate. The agreement also includes a legally binding chapter on trade and sustainable development, which includes commitments on environmental and labour standards.
The EFTA-India pact is the first trade deal where India has agreed to these comprehensive terms on sustainable development.
Follow us
