Swiss Chocolates and Wines to Get Cheaper in India Under New Trade Deal
Swiss chocolates and wines are set to cost less in India following the implementation of a new trade pact between New Delhi and the European Free Trade Association (EFTA), which took effect on Wednesday.
The agreement, formally signed in March 2024, covers Switzerland, Norway, Iceland and Liechtenstein. Under its terms, India will gradually eliminate tariffs on 80–85% of imports from the bloc, while Indian exporters will receive duty-free access for 99% of their goods in EFTA markets.
Beyond tariff cuts, the deal carries a unique provision linking trade access to investment pledges. EFTA countries have committed to invest $100 billion in India and create one million direct jobs over the next 15 years – the first time such commitments have been embedded into an Indian trade agreement.
For Indian consumers, the most visible impact will be lower prices on Swiss wines and chocolates. In return, EFTA members will enjoy duty-free access to a wide range of Indian exports, including medicines, dyes, textiles and steel products, phased in over five to ten years.
India imported $32.4 billion worth of goods from EFTA in 2023, with Switzerland accounting for the majority. Gold, which made up roughly $18 billion of those imports, will not see tariff changes under the deal. Indian exports to the bloc stood at $2 billion, mainly industrial goods, which already enjoy zero tariffs.
Analysts say while India’s direct gains may be limited, the agreement sends a strong signal that New Delhi is willing to liberalise trade with Europe. “The benefits may not lie in tariffs, but in building global perception,” said Ajay Srivastava of the Global Trade Research Initiative in Delhi.
The deal comes as India works to cushion the impact of steep 50% tariffs recently imposed by the United States. New Delhi has also signed a free trade agreement with the UK, expected to take effect in 2026, and is negotiating a broader pact with the European Union, which remains its largest trading partner.
