# 2 / 2024

Free trade agreement with India: a milestone for Swiss foreign trade

The three most important points of the free trade agreement with India

1. Customs facilitations

India has high import tariffs by international standards (weighted average of 6.2 per cent on all imported goods in 2020, see below). The core of a free trade agreement lies in tariff reductions. According to estimates, the free trade agreement with India will result in the complete or partial elimination of tariffs for 95.3 per cent of Swiss exports of industrial products. Tariff dismantling periods of 0 to 10 years are envisaged from the entry into force of the agreement – depending on the product. The rules of origin – a prerequisite for utilizing the customs benefits – have also been simplified. Certain industrial goods will not receive any customs relief. Agricultural goods are not affected.

India levies high import duties by international standards

2. Improvements to intellectual property

The protection of intellectual property - in particular patents and trademark rights – is of central importance for the innovation-based Swiss export industry. Improvements have been negotiated with India in this area. However, further improvements should be sought in the future.

3. Investment promotion

Ambitious targets are being set for foreign direct investment. India expects direct investment from EFTA companies totaling USD 100 billion and the creation of 1 million jobs over the next 15 years.