Switzerland has officially ratified the India‑EFTA Trade and Economic Partnership Agreement (TEPA), completing the final step after the other EFTA members—Iceland, Liechtenstein, and Norway—had already done so. This marks the end of nearly 16 years of negotiations. The ratification occurred in mid‑July 2025, with the referendum deadline expiring around midnight Swiss time, after which the pact cleared its final hurdle Devdiscourse+15The Hans India+15News9live+15.
What’s next?
- Entry into force: TEPA is expected to come into effect in October 2025 (some sources cite September, but early October is more consistently reported) .
- Trade benefits:
- Significant tariff cuts, with progressive dismantling over up to 10 years across various products India Shipping News+4Moneycontrol+4News9live+4.
- EFTA commits to $100 billion in investment and creation of 1 million jobs in India over the next 15 years news.admin.ch+15Moneycontrol+15India Shipping News+15.
- Enhanced intellectual property protections, improved customs procedures, a robust sustainable development chapter, and stronger legal frameworks Business Standard+12Moneycontrol+12news.admin.ch+12.
Why it matters
- For India:
- Boosts exports and foreign direct investment.
- Strengthens the Make in India initiative.
- Sets a precedent—EFTA is the first European bloc with a comprehensive investment and job-creation commitment from an FTA partner India Shipping News+11Press Information Bureau+11Business Standard+11.
- For Switzerland/EFTA:
- Enhances access to India’s expanding consumer and industrial markets.
- Offers a strategic foothold in one of the world’s fastest-growing economies ThePrint+14economiesuisse+14Moneycontrol+14EY.
- For global trade:
- Reinforces EU-region diversification beyond China and North America.
- Promotes sustainable and legally binding trade norms.
In a nutshell
| ✅ Feature | 📈 Expected Impact |
|---|---|
| Tariff cuts | Broad reduction across industrial and agri-goods |
| $100 billion investment | Inflow into Indian economy over 15 years |
| 1 million jobs | Important boost for Indian employment |
| Enhanced IP & customs | More secure, smoother trade environment |
| Sustainable trade | Legally backed sustainable development chapter |
Trade experts and government officials in both India and Switzerland are calling this a historic and landmark deal, highlighting its comprehensive scope and strategic importance IPF Online+13SWI swissinfo.ch+13News9live+13News9liveEY+11economiesuisse+11Moneycontrol+11EY+4Moneycontrol+4Rediff+4Rediff.
Overall, Switzerland’s ratification clears the path for a major trade-enabling framework that will reshape India‑EFTA economic ties starting this fall.
