he India–EFTA Trade and Economic Partnership Agreement (TEPA) completes one year of implementation on October 1, 2026. The India–EFTA trade relationship is dominated by Switzerland, which accounts for nearly 90% of the trade. India has traditionally run a large trade deficit with EFTA (in the region of $20 billion), largely due to gold imports from Switzerland.
A look at the market access gained by both sides offers some lessons on opportunities and limitations of the agreement.
EFTA’s exports to India appear to have gained more than India’s exports to EFTA. Data till July 2026 indicates a sharp year-on-year growth in imports and a corresponding decline in exports. This broadly aligns with India’s experience of FTAs with developed countries.
However, India’s phased tariff-reduction schedule means that the early increase in imports cannot be directly attributed to the market access provided to EFTA.
A notable development is the rise in gold imports from Switzerland, which increased from $3.2 billion to $9.7 billion between January and July 2026. India’s concession on gold, however, is limited to a 1% reduction from the bound tariff rate.
Energy trade between the two partners also appears to have been significantly affected and needs further investigation. Propane and butane imports from Norway, which constitute 50% of total imports, dropped sharply from $198.42 million to $94.39 million year-on-year.
The collapse in exports of light oils, which fell from $101 million to less than $1 million, appears to be the main factor behind the sharp decline in India’s exports to Iceland — from $114 million in 2025 to $10.28 million in 2026. If the decline reflects the impact of geopolitical tensions, including EU sanctions on Russia and disruptions around the Strait of Hormuz, TEPA partners must do more than secure tariff preferences. They must also sustain trade flows against geopolitical disruptions over which no partner has control.
On the Indian export side, the gains need to be viewed against the tariff regime that existed before TEPA. Switzerland abolished industrial tariffs autonomously in January 2024, extending zero tariffs to goods under HS Chapters 25-97 from all WTO members. Consequently, 97% of India’s exports to Switzerland, and 70% of its exports to EFTA, already faced zero applied tariffs before TEPA. The TEPA’s additional market-access benefits for India are therefore concentrated in agriculture and fisheries, which account for about 2% of India’s exports to Switzerland.
The agricultural tariff preferences offered by Switzerland also need to be understood in terms of their structure. While many offer a zero tariff, about 15% of India’s agricultural exports receive no tariff concessions.
In certain tariff lines, Switzerland has committed to a specified reduction from the applied tariff rather than a fixed preferential tariff rate. The preference margin is guaranteed, but the applied tariff can theoretically increase up to the bound rate. Thus, even with the preference intact, the actual duty payable on Indian exports could rise. The early experience points to two priorities. First, India must make the most of the preferences it has secured. Sectors with existing export capacity and compliance capabilities can benefit from tariff reductions, while smaller sectors with higher preference margins deserve focused support from industry and agricultural regulators. Close alignment between Swiss and EU standards also makes this an opportunity to prepare Indian exporters for the larger European market.
Second, the promised $100 billion in investment over 15 years from EFTA member states remains an important part of the agreement’s economic potential. A commitment in the text is one thing; translating it into investment on the ground is quite another. EFTA states appear to be focusing on pharmaceuticals, medtech, green technology and energy, precision engineering and the blue economy—sectors in which their industries have established global strengths.
It is now up to Indian industry, government and regulators to identify opportunities, facilitate partnerships and create early success stories.
