(Commonwealth_India) A new trade pact that came into force this week may make Swiss chocolates and wines more affordable in India. The deal is with the European Free Trade Association (EFTA), a bloc of four countries: Switzerland, Norway, Iceland, and Liechtenstein. It was signed in March 2024 and is now officially in motion.
At the heart of the agreement is a big exchange: India will slash tariffs on most goods coming in from EFTA nations, while Indian exporters will enjoy duty-free access to nearly all goods heading the other way. Alongside this, the two sides have made a rare and bold promise: EFTA countries will invest $100 billion in India over the next 15 years and create one million jobs. This is the first time India has tied such direct investment commitments to market access in a trade deal, a sign that the way India approaches trade is shifting. It’s no longer just about lowering tariffs; it’s about bringing in money, jobs, and long-term growth.
Indian consumers can most clearly perceive the changes on the supermarket shelves. Swiss wines, cheeses, and chocolates, once considered symbols of luxury, should now become more affordable. India’s vast industrial sector reaps the benefits of EFTA. Medicines, textiles, dyes, and iron and steel products, all areas where India is strong, will head into EFTA markets with zero tariffs over the next five to ten years. But for some experts, the practical benefits might be less immediate. Many of these goods already enter with low or no tariffs. Ajay Srivastava of the Global Trade Research Initiative points out that the bigger impact may lie in perception. With this pact, India is demonstrating its willingness to open up and engage with Europe on new terms.
The numbers underline the importance of Switzerland in particular. Of the $32.4 billion worth of imports from EFTA to India last year, more than half came from Switzerland, and nearly $18 billion of that was just gold. Interestingly, gold duties remain untouched under this deal, a reminder that some sensitive commodities remain off the negotiating table. India’s exports to EFTA, on the other hand, are much smaller, at around $2 billion, mostly in industrial goods that already face no tariffs.
The timing of this pact is also significant. India is facing steep 50% tariffs from the United States, its largest trading partner outside Asia, and talks with Washington continue without much breakthrough. Against this backdrop, New Delhi is looking elsewhere to cushion the blow—signing new agreements, deepening old ones, and sending signals that it’s ready for more trade. In July, India sealed a Free Trade Agreement with the UK, expected to kick in by 2026, and is currently negotiating a major deal with the European Union. The EU is already India’s largest trading partner, with bilateral trade reaching $135 billion in 2022–23, nearly double what it was a decade ago.
Seen this way, the EFTA deal is less about cheaper chocolates and more about India’s growing ambitions on the world stage. It marks the first time India has signed a trade pact with a European grouping, a step that may make larger agreements, such as the one with the EU, easier to achieve. It also signals to global investors that India is willing to put jobs and investment on the table as part of its trade strategy.
Still, for the ordinary Indian consumer, the most immediate takeaway may be a simple one: that a bar of Swiss chocolate or a bottle of fine wine might just become an affordable indulgence rather than a luxury splurge. And sometimes, small things like that are how big global shifts make themselves felt in everyday life.
