Switzerland has finally ratified a large trade deal with India and the European Free Trade Association that will reduce trade barriers and push the Indian market further open to Swiss goods.

Swiss Ambassador to India Maya Tissafi described Switzerland's ratification of the deal as a "significant milestone" in the relationship of the country with New Delhi.

Talking to PTI, the envoy explained that the Trade and Economic Partnership Agreement is expected to take effect in October.

Under this significant trade agreement, the EFTA nations, consisting of Iceland, Liechtenstein, Norway and Switzerland, are going to invest 100 billion US dollars in India within the next 15 years.

Iceland, Liechtenstein and Norway have already ratified the agreement.

The four EFTA countries signed the deal with India in March following close to 16 years of negotiations.

"Last night at midnight (Swiss time), the period for the holding of a referendum on the EFTA India TEPA ended. No referendum having been held, the people of Switzerland have by default approved the agreement," Tissafi added in a social media announcement.

The deal was ratified by Switzerland over seven months following approval by its Council of States.

"The TEPA (Trade and Economic Partnership Agreement) opens the door to long-term collaboration between our nations. In addition to lower tariffs, it will facilitate streamlined customs procedures, stronger intellectual property safeguards and create an architecture for sustainable trade practices," Tissafi said in PTI.

She further added that the most significant aspect is the EFTA nations' plan of investing 100 billion US dollars and generating one million jobs in India within the next 15 years and that this would be a "win-win situation" for everyone.

Switzerland is presently the twelfth-largest investor in India.

Swiss investment in India has grown remarkably over the past 25 years from 551 million Swiss francs in 2000, which is approximately 5935 crore rupees, to 10 billion Swiss francs in 2024, which is approximately 1,07,736 crore rupees as per the envoy.

"The TEPA is to come into force in October, the date on which the agreement shall come into force. Of course, within the particular sphere of goods, trade, some product categories will have progressive dismantling periods, which may extend more than 10 years in certain cases," she further noted.

Tissafi mentioned that the priority of the Swiss government at this time would be to see to it that TEPA was successfully implemented for Swiss businesses willing to invest in India.

"For this purpose, we are cooperating with business organisations in Switzerland and India and with Indian central and state authorities. Opening of the EFTA Desk in February is one of the steps that encourage investments by countries in the EFTA in India," she added.

More than 330 Swiss businesses are based in India in sectors such as engineering, services, precision instruments, chemicals and pharma, while Indian companies are present in Switzerland in the fields of information technology, pharma and machinery.

Referring to bilateral relations between India and Switzerland, Tissafi stated that the relationship has increased steadily over the last 77 years since both nations entered into the Treaty of Friendship.

"Our multi-sectoral partnership involves various fields such as diplomacy, economy, trade and investment, education, research and innovation, skills development, vocational training and education, development, climate change and disaster-risk reduction, and culture. This partnership has been strengthened over the years through frequent high-level exchanges," she added.

The envoy reported that relations between the two nations are going smoothly and that both are making good progress in numerous fields, ranging from signing the TEPA last March to negotiating collaborative initiatives for climate change, disaster-risk reduction and ecological projects.

"The TEPA highlights our focus on intensifying trade and economic relations between our two countries. Another highlight in our cooperation is also the inauguration of the Swiss-Indian Innovation Platform in Bengaluru in October 2023," she added.

The platform connects Indian Institutes of Technology and Swiss technical universities with leading private companies in the two countries to foster strategic innovation partnerships.

Swiss companies have been engaged in India in fields, including machine and metal engineering, precision manufacturing, services, communication, information technology, medtech, building and other related industries.