The Trade and Economic Partnership Agreement (TEPA), as the free trade agreement (FTA) with India is officially known, will considerably boost the competitiveness of Swiss industrial products on the Indian market. The main focus is on reducing India’s import duties, which are currently up to 22 percent. When the agreement comes into force, these customs duties will be either immediately eliminated or gradually removed or substantially reduced over the following years, depending on the product.
The benefits for Switzerland...
India is already an important trading partner for the Swiss tech industry today. Goods exports rose by 60 percent on a cumulative basis between 2020 and 2023, and came to over a billion francs in total in 2023. The agreement will greatly boost the competitiveness of Swiss companies in India – particularly for SMEs that do not have local production facilities. The FTA also offers advantages over competitors from China, the UK, the EU and the USA. These countries have not yet been able to conclude an agreement of this kind.
… and for India
The agreement is intended to promote direct investments by Swiss companies in India, which will create new jobs and training opportunities for the Indian population. The Indian manufacturing industry will also be able to raise its level thanks to more favourable imports of Swiss high-tech products and the increased presence of Swiss industrial companies. This will enable India to continue along its path to becoming a global manufacturing hub.
Swift ratification necessary
The agreement with India throws open the doors to a huge market. We now need to exploit the current market dynamism in India and our advantage over countries without such an agreement. The FTA must therefore be ratified and implemented quickly. The ratification process is currently under way in parliament. If both councils agree, the agreement could come into force in autumn 2025 – provided no referendum is called.