Swiss Perspective on India-EFTA Trade Accord: Catalysing Economic Expansion and Innovation

In the wake of the historic trade deal between India and the European Free Trade Association (EFTA), Swiss Federal Councillor Guy Parmelin expressed his positive outlook, affirming, “New Delhi stands poised to attract increased foreign investment from the EFTA, thereby fostering a surge in quality employment opportunities.”

On Sunday, India cemented the Trade and Economic Participation Agreement (TEPA) with the four-nation European Free Trade Association, marking a notable stride forward in economic cooperation.

Who were the signatories?

The EFTA-India TEPA was signed by Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs & Food & Public Distribution and Textiles of India; Jan Christian Vestre, Minister of Trade and Industry, Norway; Guy Parmelin, Swiss Federal Councillor and Head of the Federal Department of Economic Affairs, Education and Research; Dominique Hasler, Minister of Foreign Affairs, Liechtenstein; and Bjarni Benediktsson, Minister of Foreign Affairs, Iceland. 

Swiss Embassy Issues an Official Statement

The Swiss Embassy underscored the significance of the agreement, highlighting its potential to bring about substantial economic benefits. According to the embassy, the pact promises “better integrated and more resilient supply chains, new opportunities for businesses and individuals on both sides leading to increased trade and investment flows, job creation, and economic growth.”

At the signing ceremony, Parmelin, speaking on behalf of the EFTA Member States, underlined, “EFTA countries gain market access to a major growth market.”

Furthermore, the agreement amplifies market access and streamlines customs protocols, easing the expansion endeavours of Indian and EFTA enterprises in their respective markets, the Swiss embassy statement highlighted.

“It is further geared towards fostering and bolstering investment prospects between the participating entities,” it added.

The accord marks a significant milestone in the EFTA States’ relationship with India.

“It embodies the culmination of concerted endeavours to nurture a deeper economic alliance, accentuating the significance of dialogue, collaboration, and mutual understanding,” the statement elucidated.

Fact Sheet

Additionally, the Swiss embassy issued a fact sheet, delineating the TEPA’s indispensability for the materialization of Make in India, while noting Switzerland’s status as India’s seventh most crucial investor, boasting an annual investment uptick of 9 percent, as per IMF data.

“The accord brings forth Swiss investments and innovative prowess to India, potentially elevating it to a global innovation epicentre. Switzerland’s 13-year streak atop the Global Innovation Index further underscores its potential contributions,” the statement emphasized. The TEPA pact also paves the way for India’s access to cutting-edge Swiss technologies.

Of particular note, groundbreaking products like precision machinery are poised to fortify India’s manufacturing prowess, thereby buttressing the Make in India initiative. The agreement is poised to catalyse cross-border investments.

“Swiss enterprises, predominantly SMEs, are keen on diversifying their supply chains by establishing manufacturing bases in India,” the embassy noted.

Moreover, it is set to bolster India’s allure, fostering the establishment of joint ventures and partnerships, thereby augmenting FDI inflows into production, development, and research endeavours.

The statement highlighted the agreement’s potential to catalyse job creation for India’s burgeoning workforce, underscoring Switzerland’s proclivity for imparting vocational and technical training alongside its investments.

“It is poised to enhance the mobility of Indian talent, with several large and midsize enterprises relying on services offered by Indian firms deploying Indian talent for specific projects,” it elaborated.

The agreement also extends unparalleled access to Indian service sector suppliers.

For the first time, Switzerland is extending access to independent professionals, inclusive of provisions for spouses and dependents, the statement highlighted.

“This confers upon India a competitive edge in certain service sectors vis-a-vis other free trade partners of Switzerland,” it explained.

The agreement is poised to spur Swiss investments in India through robust exchanges between Swiss and Indian board directors and CEOs, supported by ambitious investment blueprints and tangible action plans.

The pact is poised to transform India into a global health and life sciences nexus. The infusion of legal certainty and a robust intellectual property framework is set to draw further investments from pioneering Swiss enterprises to India, propelling it up the global innovation ladder.

Furthermore, it promises enhanced access to avant-garde Swiss technologies for Indian enterprises, supplemented by knowledge transfer and training of skilled personnel for on-site manufacturing and service provision, thereby nurturing local employment opportunities. The statement further underscored the agreement’s alignment with sustainability, in consonance with India’s ESG aspirations.

Swiss enterprises investing in India are set to champion advanced, energy-efficient, and eco-friendly manufacturing practices, aligning with India’s transition to sustainable energy, thereby augmenting the efficiency and productivity of Indian enterprises, fostering best practices dissemination, and bolstering India’s competitive edge.

Moreover, the pact is poised to bolster trade in innovative pharmaceutical products and state-of-the-art medical equipment, poised to fortify India’s healthcare infrastructure and deliver cutting-edge healthcare services to its citizens.

Furthermore, it “sets a pivotal trade precedent concerning the protection of Indian specialty products as geographical indications, encompassing a wide array of products, including rice, silk, and handloom products, laying the groundwork for safeguarding and promoting the export of Indian specialty products,” the statement concluded.