Switzerland has taken a crucial step towards finalizing a free trade agreement with India by submitting the proposal to parliament. This move brings the Swiss closer to accessing the vast potential of the world's most populous nation for their exports.
The agreement, which involves the European Free Trade Association (EFTA) members - Switzerland, Iceland, Norway, and Liechtenstein - was signed in March after 16 years of negotiations. It proposes that India will eliminate import tariffs on industrial products from these countries, with the EFTA nations committing to invest $100 billion in India over a 15-year period.
Described by the Swiss government as a "significant milestone" in its trade policy, the deal is expected to reduce tariffs on nearly 95% of Swiss products exported to India. The government highlighted the growing middle class in India as a key factor contributing to significant growth potential.
While the Indian market offers immense opportunities, current Swiss exports to the country are minimal, accounting for only 0.7% of Swiss foreign sales in 2023. The government anticipates that once the agreement takes effect, it will substantially boost the competitiveness of Swiss exports in India.
The Swiss parliament is scheduled to debate the treaty in the upcoming spring and winter sessions. Upon receiving parliamentary approval, the agreement will move closer to implementation, potentially reshaping trade dynamics between Switzerland and India.
