India-EFTA trade deal: $100 billion investment and creation of 1 million jobs is legally binding, says Switzerland’s Economic Affairs Secretary

On Sunday, India and the European Free Trade Association (EFTA) member nations—Iceland, Liechtenstein, Norway, and Switzerland—marked a significant milestone by signing the Trade and Economic Partnership Agreement (TEPA).

The agreement, the culmination of negotiations dating back to 2008, is poised to bring substantial economic benefits, including a projected $100 billion in investment over the next 15 years and the creation of one million jobs in India.

Helene Budliger Artieda, Economic Affairs Secretary of Switzerland, emphasised the legally binding aspect of TEPA, particularly in connection to market access. In the event that the EFTA fails to fulfil its commitment within 15 years after a grace and review period, India retains the right to unilaterally, partially, or temporarily revoke market access.

Expressing enthusiasm for India's economic potential, Artieda stated that Switzerland aims to be a strategic partner to India, aligning with its ambitious goals to add $30 trillion to its GDP over the next 30 years.

“There is a massive interest for India. It's India's moment, it's India's century and if India does everything right, we want to be a strategic partner of India in your goals to add, I'm told by Minister Piyush Goyal, $30 trillion to your GDP in 30 years. So what an amazing story. And I think we've come at the right time to be a partner to India,” Helene Budliger Artieda stated in an interview with CNBC-TV18.

Artieda highlighted the diverse trading relationships between Switzerland and India, particularly emphasising the importance of machinery, high-precision tools, and textile machinery. Notably, India eliminated tariffs on watches and chocolates, providing Switzerland with approximately 95% of the tariff reductions. However, it was clarified that these reductions would be gradual, taking up to 10 years to reach zero tariffs.

The Economic Affairs Secretary highlighted Switzerland's excitement about the machinery and precision tools sectors, recognising their significance for the highly innovative and technologically advanced industrial producers in Switzerland. This aligns with India's goal of attracting investment in high-tech industries and enhancing its manufacturing capabilities.

During the negotiations, India sought the inclusion of services in the agreement to facilitate domestic manufacturing and encourage investment by Swiss companies. While Switzerland already imposed zero customs duty on most goods, India aimed for a commitment on investment to balance the trade relationship and protect its interests.