Swiss chocolates, watches to be cheaper in India tomorrow onwards as new FTA comes into force

With the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) slated to come into force from October 1, Swiss chocolates and watches are expected to get cheaper in the Indian market. The EFTA grouping comprises Switzerland, Iceland, Norway and Liechtenstein.

While all member countries are looking to deepen trade links and benefits for respective citizens and companies, India is expected to get $100 billion in investment from the EFTA countries in the next 15 years under the trade deal.

Terming the agreement as beneficial for people and all industries in Indian and EFTA countries, Norway's Minister for Trade & Industry, Jan Christian Vestre had earlier told CNBC-TV18 that while EFTA countries will help create 1 million new jobs in India, the exponential growth in investment in India will also benefit companies in EFTA countries.

Even as Norway seeks to eliminate 98-99% customs duties on exports from India, along with a reduction of tariffs on most products in the coming years, the Minister pointed out that trade between India and EFTA countries has doubled in the past 10 years.

Expressing contentment over the inclusion of a chapter on sustainable development in the deal, he said that India and EFTA countries can now work together on renewable energy, batteries, carbon capture & storage and all the new technology needed to combat climate change.

With the Norwegian sovereignty fund and climate fund already invested in India, he made it clear that their mandates can't be controlled by the country's government or the EFTA grouping.

With both India and Switzerland having their respective sensitivities in the dairy and agriculture sectors, India had opposed any lowering of customs duty on the import of Swiss cheese into India, eventually leaving the sectors out of the ambit of the trade deal.

Being the seventh largest investor in the US, Switzerland is looking to expand its investment footprint by reaching out to the 1.4 billion-strong Indian market and in turn has given 99% access to Indian products under the EFTA.

EFTA, as an intergovernmental organisation, was set up in 1960 for the promotion of free trade and economic integration, and the TEPA with India was signed on March 10, 2024. For the first time in the history of FTAs, a binding commitment of $100 billion investment and 1 million direct jobs in the next 15 years has been made.