Union Minister of Commerce & Industry, Mr. Piyush Goyal, revealed that the European Free Trade Association (EFTA) has pledged a $100 billion Foreign Direct Investment (FDI) commitment under the Trade and Economic Partnership Agreement (TEPA). This significant investment could potentially lead to an influx of $400-500 billion in total investment proposals for India. The agreement, which is anticipated to come into effect by year-end, includes participation from EFTA nations—Switzerland, Norway, Iceland, and Liechtenstein. Over the next 15 years, this initiative is expected to generate around one million jobs in India.
A major component of the pact is reduced or zero import duties on premium Swiss goods such as chocolates, watches, and polished diamonds, making them more accessible in the Indian market. To further support EFTA businesses expanding into India, a dedicated EFTA Desk will be established. This initiative will offer regulatory guidance, business matchmaking, and market insights, ensuring a smoother entry for EFTA enterprises.
In addition to these efforts, India is set to allocate dedicated industrial zones specifically for EFTA companies, creating a business-friendly environment that encourages further investment. Trade between India and EFTA reached $24 billion in the 2023-24 fiscal year, with Switzerland emerging as India’s top trading partner in the bloc. The strategic FDI commitment and trade policies outlined in TEPA are poised to generate extensive employment opportunities, potentially resulting in five to six million new jobs across various sectors.
