Free trade agreement with India enters into force on 1 October
Berne, 03.09.2025 — The free trade agreement between the states of the European Free Trade Association (EFTA) and the Republic of India will enter into force on 1 October. On 3 September, the Federal Council adopted the necessary amendments to the ordinances to implement the tariff concessions specified in the agreement.
The Trade and Economic Partnership Agreement (TEPA) between the EFTA states and India 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% of existing exports (2018-2023, excluding gold). These include pharmaceutical products, machinery, optical instruments, watches and processed agricultural products. Once the transition periods have expired, this will result in annual tariff savings of up to around CHF 167 million (based on existing trade).
Binding provisions on sustainable development
For the first time, India has laid down legally binding provisions on trade and sustainable development in a free trade agreement. In addition, the agreement contains a provision in which the contracting parties confirm their rights and obligations under other international agreements. These include, in particular, agreements in the areas of trade, environment, social affairs and human rights. This is to ensure that neither the environmental and labour legislation of the partner countries nor international environmental and social law are violated in connection with the agreement.
The agreement also contains a chapter on investment promotion and cooperation. For the first time in a free trade agreement, the EFTA states have committed themselves to various promotional activities with the aim of increasing investment in India and thus creating jobs. India, for its part, is endeavouring to ensure a favourable investment climate.
Diversification of Swiss export markets
Free trade agreements are an important tool, especially in challenging times for trade policy, enabling the Swiss export industry to tap into new markets and diversify. This strengthens Switzerland’s standing as a business location and boosts its ability to generate added value, create jobs and preserve existing ones. After more than 16 years of negotiations, the TEPA was signed on 10 March 2024 and was approved by the Federal Assembly on 21 March this year. By concluding the TEPA, Switzerland is continuing to pursue the foreign economic strategy defined by the Federal Council.