Swiss Suspension Won't Hinder India-EFTA TEPA Ratification

The Swiss decision to suspend the most favoured nation clause in its Double Taxation Avoidance Agreement with India will not delay the ratification of the TEPA signed by India and the EFTA bloc. The suspension does not affect Swiss investments in India or trade ties between the countries.

The Swiss government has assured that the recent suspension of the Most Favoured Nation (MFN) clause in its Double Taxation Avoidance Agreement with India will not slow down the ratification of the Trade and Economic Partnership Agreement (TEPA) signed between India and the European Free Trade Association (EFTA) bloc.

Despite initial concerns over potential negative impacts on Swiss investments and the implementation of higher taxes on Indian companies operating in Switzerland, officials clarified that these fears are unfounded. The Swiss Embassy in India confirmed that the decision would not disrupt the trade agreement's progress nor adversely affect bilateral investments.

The TEPA, signed in March with EFTA members—comprising Iceland, Liechtenstein, Norway, and Switzerland—includes a significant investment commitment to India, promising USD 100 billion over 15 years. This is expected to create around 1 million direct jobs in India. The Swiss have invested USD 10.72 billion in India since April 2000.

(With inputs from agencies.)