EFTA has 31 FTAs covering 42 nations outside the European Union.
Switzerland which is the largest trading partner for India in this bloc, is among the two countries in Europe with trade agreements with China. "Switzerland is excited about getting access for its machinery, and precision tools in India. Opening up the India market for Swiss machinery will drive investments into India," said Helene Budliger Artieda, Swiss State Secretary for Economic Affairs.
Earlier this year Switzerland decided to allow industrial goods to be imported into Switzerland from all nations at zero duty. This had led Indian negotiators to question the Swiss government about what India would get from the trade agreement with EFTA as there was no special treatment for Indian industrial goods and the trade balance was already in the Switzerland government's favour.
Budliger explained that to counterbalance India's concern the four EFTA partners had made a binding commitment to invest $100 billion and generate one million jobs in India over 15 years. "EFTA has pledged $100 billion in investments in India over 15 years, but it is up to the private sector to invest. A pledge of $100 billion investment and 1 million jobs from India is a counterbalance to the market access that EFTA gets. India will have the right to revoke temporarily, partially or full market access if the investment goal of 100 billion is not met in 15 years," said Budliger.
The Swiss official confirmed that paragraphs on data exclusivity with regard to pharmaceutical manufacturing were not there in the final text. Experts had raised concerns that IPR provisions in the deal would negatively impact Indian generic drug makers. Budliger said that India had not committed to anything beyond its previous obligations under WTO.
Sources said this is one of the most important FTAs that EFTA has ever signed and is part of a larger strategy to diversify supply chains and unlock investments in manufacturing. India and Switzerland are separately working on a migration and mobility agreement which will allow young postgraduate Indians to work in Switzerland for a few years.
