Economic Mission to India: August Benz on aims and achievements 

August, what is an economic mission all about? 

An economic mission is a joint visit by representatives of the government and business to promote economic cooperation with the country in question. It provides a forum for direct dialogue at the highest level and can pave the way towards real business opportunities. Our delegation in February was led by State Secretary Helene Budliger Artieda, Director of the State Secretariat for Economic Affairs (SECO). 

Negotiations over a free trade agreement with India took a long time and were completed last year. What was the focus of this year’s visit? 

That’s right. The European Free Trade Association (EFTA) states signed the Trade and Economic Partnership Agreement (TEPA) in Delhi on 10 March 2024 after 16 years of negotiations. This marks a milestone in Swiss trade policy and enables a further diversification of access to today’s growth markets. Switzerland and the other EFTA states succeeded in becoming the first European partner to sign a free trade agreement with India. 

The purpose of this year’s economic delegation was to set up an EFTA desk at the investment promotion agency Invest India to provide targeted support to EFTA-based investors. The visit was also a chance for various industries to hold bilateral talks with the Indian authorities. Direct dialogue with members as well as with Swiss and Indian authorities is very important for the SBA, which lobbies for improved access to the Indian market for banks in Switzerland, among other things.

What did the SBA want to achieve with the Mission? 

The SBA actively supports open markets and free trade agreements, which are a vital instrument in Switzerland’s foreign trade policy and thus essential for our country’s prosperity. On top of this, India is a very attractive market for some of our members, and the TEPA in particular offers a great deal of potential to forge new business links and build on existing ones.

What has India gained from the negotiations, and what concessions has it made in return? 

The EFTA states have committed in the TEPA to investing USD 100 billion in India and creating a million jobs within 15 years. In return, India will abolish its high tariffs on more than 90% of commercial imports, not including gold, either immediately or over time.

What were the two main findings from the trip? 

Firstly, it was plain to see that the Indian side is very open to discussions. The Swiss delegation, for instance, was able to meet with Indian Minister of Commerce and Industry Piyush Goyal. India is showing a lot of interest in economic cooperation with EFTA and expressly welcomes investment. 

Secondly, it became clear that India is also an exciting growth market for Swiss banking. The TEPA is aimed at reducing tariffs and simplifying regulatory procedures to make it easier for Swiss companies to gain a foothold on the Indian market. This offers opportunities for banks in Switzerland that operate an export finance business. As the world’s most populous country and currently its fifth-largest economy, India’s appeal as a market for wealth and asset management services is growing. At 12% a year, India’s growth in its number of ultra-high-net-worth individuals (UHNWIs) is among the fastest worldwide, which is especially interesting for multinational wealth management banks. Some Swiss banks have been operating in India for a long time and are thus already contributing directly and indirectly to value creation there.

What happens next as regards the TEPA? 

The next step is for all the EFTA states and India to ratify the Agreement. In Switzerland, this means that it must first gain parliamentary approval. The Council of States already voted unanimously in favour of it (with three abstentions) back in December 2024. The National Council followed suit on 21 March 2025 by 130 votes to 33 with 28 abstentions.

When could the TEPA enter into force? 

Provided the other EFTA states and India have ratified it by then and in the absence of an optional referendum, the TEPA could enter into force in autumn this year. The SBA will do all it can to ensure that the Agreement is ratified as quickly as possible in Switzerland so that our exporters can benefit from a competitive advantage over other countries. 

Thanks for an informative chat, dear August!