EFTA deal implementation from September: Piyush Goyal

Bern: The Free Trade Agreement (FTA) between India and the four-member European Free Trade Association (EFTA) will be implemented from September, Commerce and Industry Minister Piyush Goyal confirmed to Business Today on June 9.  

The agreement, signed in March 2024, covers Switzerland, Norway, Iceland, and Liechtenstein. Goyal said the agreement has received approval from the Parliaments of all four countries. 

Under the EFTA, Indian exports to these four countries will enjoy zero or significantly reduced tariffs, boosting trade volumes. In return, India will see lower import duties on premium products like Swiss watches and chocolates, making them more affordable for Indian consumers. 

Goyal said the agreement also includes a landmark commitment from EFTA nations to invest $100 billion in India over the coming years. “Swiss companies are particularly keen to invest in pharma, engineering, and tech, and are willing to share technology as part of their India strategy,” he noted during his visit to Switzerland. 

He added that India’s cost-competitive and skilled workforce makes it an attractive destination for European investors. For instance, a Swiss company working on cancer treatment could manufacture drugs in India at one-tenth the cost, making them more accessible globally. 

Goyal also invited Swiss firms to hold board meetings in India to experience the country’s transformation firsthand over the last decade. In Sweden, he is scheduled to meet top corporates including Ericsson, Volvo, IKEA, Saab, and Sandvik to further strengthen bilateral investment ties. 

Switzerland-based Bata Brands SA CEO Sandeep Kataria also announced plans to begin design operations in Gurugram, focusing on developing country markets, and exploring job work partnerships with Indian footwear manufacturers.  

The two sides signed the Trade and Economic Partnership Agreement (TEPA) on March 10, 2024. Under the pact, India has received an investment commitment of $100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties. 

Goyal said he held bilateral meetings with over a dozen companies here and most of them are keen to invest in India. The Swiss firms have shown interest in sectors such as pharma, cybersecurity, and machinery manufacturing, he said. "Lots of excitement here for India," he said. 

On FTAs, he said India is actively negotiating these pacts with countries, including New Zealand, Chile, Peru, Oman, and the European Union (EU). He indicated that a trade pact with the EU could be concluded "faster than expected".