India and the European Free Trade Association (EFTA) nations on February 10 launched a dedicated desk to provide structured support for European businesses seeking to invest, expand, or establish operations in India. This initiative is expected to facilitate the US$ 100 billion foreign direct investment (FDI) commitment outlined in the trade deal between both sides.
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As part of the Trade and Economic Partnership Agreement (TEPA) signed in March 2024, EFTA members—Switzerland, Norway, Iceland, and Liechtenstein—have committed to investing US$ 100 billion in India over the next 15 years, a move expected to drive total investments between US$ 400 billion and US$ 500 billion, according to Commerce and Industry Minister Piyush Goyal.
This development follows EFTA nations’ investment commitment under the trade agreement—US$ 50 billion within the first 10 years of its implementation and an additional US$ 50 billion over the subsequent five years.
Mr Goyal further added, “We envision an overall investment of US$ 400-500 billion. About 4-5 million jobs will also be created indirectly. The four countries will also benefit from significant market access to India, which is rapidly growing and is set to add US$ 30 trillion to the economy in the next 30 years.”
He informed that products such as Swiss watches, chocolates, and cut and polished diamonds will also be allowed to enter India at reduced or zero duties.
EFTA stated that businesses in its four member countries are gearing up to explore investment opportunities and strengthen commercial ties with Indian partners, even before the trade deal comes into effect. The statement noted, “The economic ties between the four EFTA states and India hold immense potential. The EFTA industries excel in areas such as precision engineering, renewable energy, pharmaceuticals, and financial services – sectors that align with India’s growth ambitions and innovation-driven economy.”
In return, these nations will gain preferential tariff access to Indian markets. The investments are expected to generate one million direct jobs, with total direct and indirect employment projected to reach 4 to 5 million. At the meeting, the Minister offered dedicated enclaves for EFTA companies within the 20 smart industrial cities being developed by the National Industrial Corridor Development Corporation (NICDC) or in the 100 industrial parks being built under the hub-and-spoke model.
In terms of trade, India currently runs a significant trade deficit with EFTA nations. In 2023-24, India’s exports to EFTA stood at US$ 1.94 billion, reflecting a modest 0.8% year-on-year increase, while imports surged by 31% to US$ 22 billion. Switzerland accounted for US$ 21.2 billion of these imports, with gold and precious stones making up US$ 18 billion.
Switzerland remains India’s largest trading partner and investor within the EFTA bloc, followed by Norway. During the period April 2000-September 2024, India received US$ 10.72 billion in foreign direct investment from Switzerland.
The launch of EFTA Desk
India and the European Free Trade Association (EFTA)—comprising Switzerland, Norway, Iceland, and Liechtenstein—have taken a significant step towards stronger economic collaboration with the launch of the India-EFTA Desk. This initiative follows the recent signing of the India-EFTA Trade and Economic Partnership Agreement (TEPA), making EFTA the first European bloc to formalize a trade deal with India.
TEPA consists of 14 chapters, primarily focusing on market access for goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, market access for services, intellectual property rights, trade and sustainable development, along with other legal and horizontal provisions. (The TEPA is still awaiting formal implementation, mainly due to Switzerland’s prolonged ratification process. It is expected to come into force by the end of this year.)
Both sides announced the launch of the EFTA Desk by Invest India, the national investment promotion and facilitation agency, calling it a significant step toward strengthening economic ties.
High-ranking dignitaries from all four EFTA nations attended the launch: Swiss State Secretary for Economic Affairs (SECO) Helene Budliger Artieda, Norway’s State Secretary of Trade and Industry Tomas Norvoll, Iceland’s Permanent Secretary of State Martin Eyjolfsson, and Liechtenstein’s Minister of Foreign Affairs, Education, and Sports Dominique Hasler.
Serving as a central contact point, the India-EFTA Desk will assist businesses from the four EFTA countries in investing in India while addressing investor concerns and resolving issues. The Desk will act as a vital link between businesses from both sides, promoting transparency, trust, and ease of business. It will offer structured support to EFTA companies seeking to invest, expand, or set up operations in India. The Desk will focus on driving investment in sectors such as renewable energy, life sciences, engineering, and digital transformation.
CIM Piyush Goyal said, “This desk will cut across all ministries in the central government. It will draw resources from the state governments on a need basis to catalyse 100 billion dollar investment, to fast track it, make it easier to do business in India, ensure seamless flow of capital and resources both ways, and navigate any areas of concern that will crop up.”
DPIIT Secretary Shri Amardeep Singh Bhatia highlighted that TEPA will foster joint ventures, SME collaborations, and technology partnerships, with the Desk helping EFTA businesses navigate regulatory processes.
Union Minister of State Shri Jitin Prasada emphasized the strategic importance of EFTA for India’s development goals, pointing to-
- Norway‘s expertise in green shipping,
- Switzerland‘s rail network advancements,
- Iceland’s geothermal energy leadership, and
- Liechtenstein’s high-value manufacturing.
He also referenced research collaborations between IITs and Norway’s Arctic University, underscoring TEPA’s broader scope beyond trade.
Conclusion
The inauguration of the EFTA Desk marks the beginning of a new phase in India-EFTA economic cooperation, setting the stage for sustainable and innovation-driven growth. The dedicated platform will serve as a centralized support system for EFTA companies seeking to expand in India. It aims to streamline processes, facilitate business operations, ensure smooth capital flow, and address concerns, thereby enhancing trade and investment relations between both sides.
