New Delhi, Jul 11 (PTI) Switzerland has finally completed the ratification process for a landmark trade deal between India and the European Free Trade Association (EFTA) that would reduce trade barriers and significantly open up the Indian market to Swiss exports.

Swiss Ambassador to India Maya Tissafi described Switzerland's ratification of the trade pact as a "significant milestone" in her country's bilateral relationship with New Delhi.

The envoy told PTI that the Trade and Economic Partnership Agreement (TEPA) is expected to come into force in October.

Under the mega trade pact, the EFTA States of Iceland, Liechtenstein, Norway and Switzerland are looking at making an investment of USD 100 billion in India over the next 15 years.

Iceland, Liechtenstein and Norway have already ratified the trade deal.

In March, the four-nation European grouping signed the TEPA with India following nearly 16 years of negotiations.

"At midnight yesterday (Swiss time), the referendum deadline for the EFTA-India TEPA officially expired. With no referendum, the Swiss people have expressed their tacit approval of the agreement," Tissafi said in a social media post.

Switzerland's ratification of the trade pact came more than seven months after the Swiss Council of States approved it.

"The TEPA paves the way for long-term cooperation between our countries. Apart from reduced tariffs, it will help streamline customs procedures, enhance intellectual property protections and establish a framework for sustainable trade practices," Tissafi told PTI.

Most importantly, the EFTA states will invest USD 100 billion and create one million (10 lakh) jobs in India over 15 years, she said, adding that this will be a "win-win situation" for all countries involved.

Currently, Switzerland is the 12th-largest investor in India.

Swiss investments in India have grown exponentially over the last 25 years, rising from CHF 551 million (approximately Rs 5,935 crore) in 2000 to CHF 10 billion (Rs 1,07,736 crore) in 2024, the envoy said.

"The TEPA is expected to enter into force in October, date upon which the agreement will be effective. Of course, in the specific domain of trade in goods, some categories of products will be subject to progressive dismantling periods, spanning over 10 years in some cases," she added.

Tissafi said the Swiss government's priority would be to successfully implement the TEPA for the Swiss companies that want to invest in India.

"To this end, we are partnering with business associations in Switzerland and India and with Indian authorities at the central and state levels. The opening of the EFTA Desk in February is one measure that facilitates investments from EFTA countries in India," she said.

More than 330 Swiss companies are present in India in sectors such as engineering, services, precision instruments, chemicals and pharmaceuticals, while Indian companies are present in Switzerland in sectors such as IT, pharmaceuticals and machinery.

On the overall India-Switzerland ties, Tissafi said the bilateral relations have evolved over the last 77 years, since the two countries signed the Treaty of Friendship.

"Our multi-sectoral cooperation covers diverse areas, including diplomacy, economy, trade and investment, education, research and innovation, skills development, vocational education and training, development, climate change and disaster-risk reduction, and culture. This relationship has been reinforced over the years through regular high-level visits," she said.

The relationship between the two countries is on an upward trajectory, the envoy said, adding that they are making strides in various domains, from the signing of the TEPA last March to the implementing of projects in the fields of climate change, disaster-risk reduction and environment.

"The TEPA underscores our commitment to enhancing trade and economic ties between our two nations. Another notable advancement in our partnership is also the launch of the Swiss-Indian Innovation Platform in Bengaluru in October 2023," she said.

The platform connects Indian Institutes of Technology (IITs) and Swiss technical high schools and universities with leading private companies from both countries to foster strategic innovation partnerships.

Swiss companies have been operating in India in the machine, electrical engineering and metals (MEM) and precision sectors, as well as in services, information, communication, software, medtech and construction, among other sectors. PTI BSM/MPB RC