India Strengthens Economic Ties With EFTA: A New Era Of Growth And Partnership

India’s growing partnership with the European Free Trade Association (EFTA) offers promising opportunities for economic diversification and development. Amid rising protectionism and global geo-economic instability, this collaboration is poised to drive India’s innovation-led economy forward.

To deepen economic ties with EFTA and foster greater trade and investment, India launched a dedicated EFTA Desk at Bharat Mandapam in New Delhi on February 10, 2025. This initiative aims to transform business opportunities into tangible results by acting as a vital resource at the crossroads of commerce.

The EFTA Desk will serve as a centralized platform for facilitating investments from EFTA countries, assisting companies seeking to expand in India. It will provide critical support to navigate the Indian market, offer regulatory guidance, and provide insights into domestic policies and investment opportunities. By enabling cooperation in key areas of trade, this desk is expected to attract both imports and investments, strengthening India-EFTA economic ties even before the Trade and Economic Partnership Agreement (TEPA) takes effect.

A New Era Of Partnership

The creation of the EFTA Desk signals a shift towards deeper, long-term collaboration between like-minded economies. Rather than simply expanding market access, this partnership is rooted in shared values and a commitment to mutual growth. The desk will not only assist in connecting businesses but also help create sustainable trade practices, regulate customs procedures, and improve market access for both sides.

Unlocking Opportunities through TEPA

The India-EFTA Trade and Economic Partnership Agreement (TEPA), concluded on March 10, 2024, marks a historic milestone in bilateral relations. EFTA, founded in 1960 by Austria, Denmark, Portugal, Norway, Sweden, Switzerland, and the UK, has evolved over the years. Denmark, the UK, and Portugal have since left the group, while Austria and Sweden joined the European Union. The current partnership between India and EFTA members—Switzerland, Norway, Iceland, and Liechtenstein—represents a groundbreaking first.

Also Read: Stock Market Opens Nearly Flat; Auto Stocks Pressure Sectoral Indices

This agreement is the first free trade pact to include legally binding commitments from EFTA to target investment and job creation in India. The agreement will come into force by the end of 2025, following 21 rounds of negotiations that began in 2008. It promises $100 billion in investments from EFTA countries and aims to create 1 million jobs in India over the next 15 years.

Reducing Dependency And Strengthening Economic Resilience

The TEPA agreement is poised to strengthen India’s economic resilience by diversifying its imports, particularly by reducing its reliance on China. The partnership holds immense potential for economic cooperation between India and the four EFTA countries, enhancing bilateral trade and collaboration in sectors such as renewable energy, engineering, and financial services.

Boosting India’s ‘Make in India’ Initiative

India’s trade with EFTA is already on an upward trajectory. The trade volume between India and EFTA countries increased from $18.65 billion in 2022-23 to $24 billion in 2023-24. With the trade balance tilting in favor of the EFTA bloc, this growing economic relationship underscores the strategic importance of the partnership.

An example of the fruitful collaboration between India and EFTA countries is Switzerland’s role in India’s moon mission. Switzerland stands as India’s largest trading partner among EFTA nations, with foreign direct investment (FDI) amounting to $10.72 billion between April 2000 and September 2024.

Looking Ahead: A Bright Future For India-EFTA Relations

The India-EFTA partnership represents not just a trade agreement but a significant step towards long-term economic growth and cooperation. With the TEPA agreement set to be implemented soon and the establishment of the EFTA Desk, both sides are poised to unlock new avenues for trade, investment, and innovation.