TEPA: The Swiss-Indian Trade Guide
The Trade and Economic Partnership Agreement is the first FTA between India and a European bloc. A historic opening of one of the world’s fastest-growing markets for Swiss exporters and European investors.
What TEPA means for your business
India is now the world’s most populous nation and the fifth-largest economy, growing at 6-7 percent annually. Yet for decades, Indian import tariffs of 30 to 100 percent on many categories made Swiss premium exports uncompetitive outside a narrow luxury segment. TEPA changes the arithmetic.
The agreement covers four economic pillars: trade in goods, trade in services, investment promotion and cooperation, and intellectual property with sustainability provisions. For Swiss companies, the most immediate effect is the phased reduction of Indian tariffs on 82.7 percent of tariff lines, reaching full implementation over seven to ten years. For Indian companies, Switzerland offers duty-free access on 94.7 percent of imports, opening a wealthy consumer market for textiles, speciality agricultural goods, and IT services.
Sectors to watch
- Food and confectionery: Swiss chocolate, cheese, and processed foods see tariffs drop from 30-40 percent toward zero. Premium positioning becomes economically viable across metro markets.
- Machinery and precision engineering: Swiss capital goods, CNC machinery, and medical equipment gain market share as Indian infrastructure investment accelerates.
- Pharmaceuticals and medical devices: Switzerland’s deep pharma expertise pairs with India’s generic manufacturing capacity; TEPA smooths bilateral flows in both directions.
- Financial services and investment: the EFTA USD 100 billion commitment drives PE/VC deal flow toward Indian Climate Tech, Infrastructure, and Growth Equity.
- Watches, luxury goods, and services: Swiss brands gain tariff parity with other premium origins, expanding addressable market in India’s rising HNWI segment.
What TEPA does not change
Tariff reduction is not the same as frictionless trade. FSSAI food safety registration, BIS product certification, import licensing, labelling rules, and customs documentation continue to apply. Many Swiss exporters discover too late that the regulatory pathway, not the tariff, is the real bottleneck. Pullely Consulting guides companies through the full stack: tariff classification, regulatory registration, partner identification, and ongoing compliance.
The first-mover window
TEPA is phased over years, but the competitive window is narrow. Swiss SMEs that establish distribution partnerships and build brand recognition in the first 18-24 months will be positioned for the full tariff cycle. Late entrants face saturated channels and higher partner acquisition costs. This is the strategic backdrop for our advisory mandates today.
Frequently asked about TEPA
TEPA is the Trade and Economic Partnership Agreement between the European Free Trade Association (EFTA) states, including Switzerland, and the Republic of India. It is the first free trade agreement India has concluded with a European bloc. It covers trade in goods, services, investment, intellectual property, and sustainable development.
TEPA was signed on 10 March 2024 in New Delhi. Ratification by all EFTA members and India is ongoing and the agreement is being progressively implemented. The agreement commits EFTA states to invest USD 100 billion in India over 15 years, creating one million direct jobs.
Swiss sectors with the largest tariff reductions include pharmaceuticals and medical devices, machinery and precision engineering, chocolate and confectionery, watches, dairy, and processed foods. Indian exports to Switzerland gain improved access in textiles, leather goods, processed agriculture, and IT services.
India liberalises 82.7 percent of its tariff lines for imports from EFTA states. Switzerland offers duty-free market access on 94.7 percent of imports from India. For many Swiss premium food and industrial categories, tariffs drop from 30-50 percent to zero over a 7-10 year phase-in period.
TEPA reduces tariffs but does not remove non-tariff regulatory requirements. Swiss food exporters still need FSSAI (Food Safety and Standards Authority of India) registration. Industrial products often require BIS (Bureau of Indian Standards) certification. Import licensing, labelling standards, and customs documentation continue to apply.
First-mover advantages include locking in distribution partnerships before competitors enter, building brand recognition in a fast-growing consumer market, and negotiating favourable terms while demand exceeds supply. Early entrants also benefit from Swiss federal government export support programmes aligned with TEPA.
Yes. TEPA includes binding commitments on services trade covering financial services, telecommunications, transport, and professional services. Investment chapters protect EFTA investments in India and commit both sides to transparency and dispute resolution. We support Swiss and European PE/VC funds with deal sourcing in India’s Climate Tech, Infrastructure, and Growth Equity segments.
Build your TEPA strategy
Whether you are exporting into India, importing to Switzerland, or sourcing deal flow across the EFTA-India corridor, we help turn TEPA from headline to execution.