Swiss watches may soon be within reach for more Indian wrists—and those boxes of premium Läderach chocolates could cost less, too. That’s the consumer promise behind the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA), set to take effect by September 2025.

“By September, TEPA will be operationalised. It will enter into force by September,” confirmed Commerce and Industry Minister Piyush Goyal during his recent visit to Switzerland. The deal, signed in March 2024 after 16 years of negotiations, has cleared parliaments in all four EFTA countries. Only Switzerland’s final parliamentary challenge remains, with an objection window open until 10 July.

What’s in It for Indian Consumers and Industry?

• Luxuries for less – Expect significant cuts or full elimination of import duties (currently 20–60%) on Swiss-made watches, artisan chocolates, and diamonds.

• FDI bonanza – EFTA pledges a mammoth $100 billion in investment over 15 years, targeting pharmaceuticals, cybersecurity, and precision machinery. Crucially, India will permit 100 % FDI in machinery manufacturing to replace Chinese imports.

• Red‑tape reform – Swiss officials insist on business-friendly, transparent regulations in India to fully unlock this deal.

A Geostrategic Opening

India is not just aiming to satisfy luxury demand—it is signalling its maturity as a trade power. With additional agreements under negotiation with the EU, New Zealand, Chile, Peru, and Oman, TEPA exemplifies a diversified global strategy.

It’s also a striking contrast to the fraught U.S.–Swiss trade backdrop. In early April, the Trump administration imposed a 10 % blanket tariff on Swiss goods—escalating to 31 % on imported watches, machinery, and foodstuffs unless a deal is struck  . Swiss exporters scrambled: watch shipments to the U.S. surged by 149 % in April as brands rushed products across the Atlantic pre‑tariff. This export boom temporarily lifted total Swiss watch exports by 18 % year‑on‑year  , but marked a panic‑driven bump—not sustainable growth.

These tariffs triggered industry belt‑tightening: major manufacturers slashed margins, raised U.S. prices, and fuelled fears of ‘luxury freeze’ in Geneva showrooms . U.S. pre‑owned watch platforms like Bob’s Watches saw a 20 % sales jump—customers eager to dodge levies opted for domestic second‑hand options. While the U.S. and Switzerland negotiate bilateral waivers or rollbacks, India is seizing the opportunity to lock in a tariff‑free trade path with Europe’s precision‑goods powerhouse. TEPA’s strategic pitch aligns with India’s “Make in India” commitments, actively reduces reliance on Chinese high‑tech imports, and applies pressure towards domestic regulatory reform.

For Indian buyers, the direct dividend is cheaper luxury. For the economy, it’s deeper enmeshment in global tech and supply chains. And on the world stage, it marks India’s pivot towards diplomatic flexibility—showing it can engage constructively even when traditional powers are clashing.