EFTA seeks Bilateral Investment Treaty with India to support $100 billion investment commitment

The European Free Trade Association (EFTA) has proposed a Bilateral Investment Treaty (BIT) with India to encourage its member countries' companies to fulfill their collective investment commitment of $100 billion over the next 15 years.

Speaking on the sidelines of the India-EFTA Prosperity Summit in New Delhi, Union Commerce and Industry Minister Piyush Goyal revealed that the Swiss government is currently in discussions with India’s Ministry of Finance regarding the proposed BIT.

The summit marked the official implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA). EFTA was represented by Helene Budliger Artieda, Swiss State Secretary at the State Secretariat for Economic Affairs; Ragnar Kristjánsson, Director General of External Trade and Economic Affairs at the Icelandic Ministry for Foreign Affairs; Christine Lingg, Deputy Director of the Office for Foreign Affairs of Liechtenstein; May-Elin Stener, Norway’s Ambassador to India; and Markus Schlagenhof, Deputy Secretary-General of EFTA.

The dignitaries jointly welcomed the agreement's shared goals: mobilising $100 billion in investments in India over 15 years and supporting the creation of one million direct jobs. An investment facilitation mechanism will be established to monitor progress and ensure delivery on commitments.

India's IP regime to attract greater investments

Inviting pharmaceutical companies to innovate in India, set up manufacturing units, and export to global markets, Goyal acknowledged historical concerns around Intellectual Property (IP) laws in countries like Switzerland and the UK, which were often seen as difficult jurisdictions due to a longstanding trust deficit.

However, he expressed confidence that the robust IP chapter in both the TEPA and the UK FTA would reassure investors. "India's strong IP laws and enforcement mechanisms will attract investments well beyond the committed $100 billion," he said.

Major announcements from EFTA companies

Several EFTA-based companies have already committed to investments in India:

Roche Products: Will invest CHF 1.5 billion in India over the next five years, focusing on R&D for medicines targeting Alzheimer’s and Parkinson’s. The company has also signed an MoU with the Indian government to foster innovation in healthcare.

Schwihag India: Will invest around €30 million to help modernize Indian railway tracks for higher train speeds.

Terming the investment commitment as a way to create balance in the relationship, Goyal pointed out that the combined population of all EFTA countries is smaller than that of Mumbai. Sharing his delight over Swiss citizens enjoying Amul cheese and Indian spirits like Indri, Goyal remarked, "Switzerland sweetens the world with your chocolates, while we spice it up with our chai."

He also noted the rapid progress made with the European Union on FTA negotiations, adding that an IP chapter will be included in India's upcoming FTA with the EU.

Companies from the EFTA Bloc announcing investments in India with the India-EFTA TEPA coming into force:

• Skyrrup: New plant in Noida


• Kohinoor Ropes (Hampidjan subsidiary): Acquired land in Aurangabad for operations


• LGT India


• Hilti India: Manufacturing plant in Baroda to support sustainable construction


• Kongsberg: Signed MoU for shipbuilding; expects growth in local capacities with reduced tariffs


• Elkem: Operating in India since the 1950s; plans to increase investments fivefold


• Borregaard


• Bobst India


• Bucher Hydraulics Private Limited


• Buhler India Pvt Ltd


• Furrer & Frey India Private Limited


• Huber+Suhner (India)


• MSC Agency (India) Private Limited


• Nestlé


• Novartis Pharma India


• Rieter India Pvt Ltd


• Roche Products India Ltd


• SIG Combibloc