India Establishes European Free Trade Association Desk

February 11, 2025

India is enhancing its trade relations with the European Free Trade Association (EFTA) by establishing a dedicated platform. This initiative follows the signing of the Trade and Economic Partnership Agreement (TEPA) in March 2024. The agreement aims to increase trade and investment between India and the EFTA member states – Iceland, Liechtenstein, Norway, and Switzerland. The EFTA desk will facilitate business operations and investment opportunities between these regions.

What is EFTA?

The European Free Trade Association (EFTA) was founded in 1960.
It includes four member states – Iceland, Liechtenstein, Norway, and Switzerland.
EFTA aims to promote free trade and economic integration among its members and with global partners.
The organisation manages several trade agreements, including the Agreement on the European Economic Area (EEA), which links EFTA states with the EU.

Trade and Economic Partnership Agreement (TEPA)

TEPA was signed to enhance economic ties between India and EFTA.
It is expected to come into effect by the end of 2025.
The agreement includes an investment commitment of $100 billion over 15 years.
It also allows reduced or zero duties on various products, such as Swiss watches and chocolates.
This deal represents step in India’s trade negotiations.

Investment and Trade Growth

India-EFTA trade reached approximately $24 billion in 2023-24, up from $18.65 billion in the previous year.
Switzerland is the largest trading partner within the EFTA bloc, contributing to foreign direct investment (FDI) in India.
Between April 2000 and September 2024, India received $10.72 billion in FDI from Switzerland.
The trade balance currently favours the EFTA countries.

EFTA Desk Functions

The EFTA desk is designed to support EFTA companies looking to invest in India.
It will provide market insights, regulatory guidance, and business matchmaking services.
The desk aims to simplify the process of navigating India’s investment landscape.
It will also serve as a centralised support mechanism for encouraging collaboration between Indian and EFTA businesses.

Business Roundtable Initiatives

A high-level EFTA-India business roundtable will facilitate discussions among over 100 leading businesses. This forum will focus on collaboration in key sectors such as pharmaceuticals, life sciences, and agritech. The roundtable aims to explore joint ventures, investment opportunities, and technology partnerships under the TEPA framework.

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