Swiss specialty organics find fertile ground in India

Karnataka's Western Ghats witnessed something of a revolution by October. The dust had barely settled on TEPA's implementation when India's Trade and Economic Partnership Agreement with the European Free Trade Association came into effect on 01 October 2025. What followed wasn't the sweeping transformation some predicted, but rather a quiet recalibration of specific product flows.

The numbers tell their own story. Overall trade between India and Switzerland remained virtually flat, climbing just 0.2% when comparing the fourth quarters of 2024 and 2025. Yet beneath this tepid headline figure, certain products saw dramatic shifts that reveal TEPA's early impact on particular supply chains.

Cashews Command Premium Pricing

The standout performer emerged from India's coastal processing hubs. Cashew cultivation is mainly grown in states like Maharashtra, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa, Orissa, West Bengal, and the cashew processing industry was earlier concentrated in Kollam (Kerala), Mangalore (Karnataka), Goa, and Vettapalam (Andhra Pradesh), but now it is spread across many states of India. Swiss customs data shows India's cashew exports to Switzerland more than tripled, jumping 232% to reach $2.8 million in the October-December 2025 period.

Tariff eliminations will take different forms: some will be removed immediately once TEPA comes into force on October 1, 2025, and cashews clearly benefited from this immediate relief. The timing coincides precisely with TEPA's implementation, suggesting tariff reductions prompted Swiss importers to shift sourcing patterns toward Indian suppliers.

"With EFTA's offer covering 92% of tariff lines, Indian exporters in sectors like machinery, organic chemicals, textiles, and processed foods will enjoy significantly improved access to EFTA markets through TEPA."

The cashew surge reflects deeper supply chain dynamics. The cashew industry has large economic significance as it employs more than 10 lakh people on farms and factories in rural areas. Processing units from Kollam to Mangalore ramped up production specifically for the Swiss market, where cashews command premium pricing in specialty food applications.

Coffee Awakens Swiss Palates

Coffee told an equally compelling story. India's coffee shipments to Switzerland expanded 54%, reaching $25.1 million. This wasn't accidental timing. The event coincides with the implementation of the India–European Free Trade Association (EFTA) trade and economic partnership agreement (TEPA), which provides new opportunities for Indian coffee to access premium markets in Switzerland, Norway and Iceland. Among the EFTA member countries, Switzerland and Norway are high-value markets with strong demand for high-quality coffees.

The coffee boom originates from India's established production clusters. Karnataka remains the epicentre of production, contributing over 2.8 lakh metric tonnes (2025–26 post-blossom estimates), followed by Kerala and Tamil Nadu. India's diverse geography has created 13 recognised coffee zones, with renowned regions such as Coorg, Chikkamagaluru, Araku Valley, Nilgiris, Wayanad, and Bababudangiris producing coffees celebrated worldwide for their distinct profiles.

Companies moved swiftly to capitalize on TEPA's opportunities. CCL Products (India) Limited, incorporated on 22 March 1961 and headquartered in Hyderabad, Telangana, is a leading coffee producer, trader, and exporter. Apart from India and Vietnam the company also operates in Switzerland, Europe, offering instant coffee, roast & ground coffee, and flavored blends for B2B and B2C markets. The company's existing Swiss operations positioned it perfectly to exploit the tariff reductions.

Seafood Surprises Swiss Markets

Perhaps the most unexpected beneficiary was India's seafood sector. Frozen shrimps and prawns doubled their exports to Switzerland, reaching nearly $1 million. More remarkably, prepared crustaceans — a category with zero exports in 2024 — generated $377,000 in Swiss sales by late 2025.

This represented genuine market creation rather than trade diversion. Swiss importers, faced with reduced tariffs under TEPA, began sourcing Indian seafood for the first time. The timing suggests TEPA's preferential rates made Indian suppliers cost-competitive against established European sources.

Even more exotic marine products found Swiss buyers. Cuttlefish, octopus and squid exports exploded by 1,293%, admittedly from a tiny base but indicating Swiss willingness to experiment with Indian seafood varieties previously considered niche.

Jobs Flow Through Coastal Communities

These export gains translate into tangible employment across India's rural economies. Using the agriculture sector's established multiplier effects, the $30 million surge in TEPA-beneficiary products directly supports an estimated 4,500 jobs, with another 7,500 indirect positions across processing, logistics and support services.

The impact concentrates in specific regions. Maharashtra's cashew processing clusters around Sindhudurg and Ratnagiri saw factory utilization rates climb as Swiss orders materialized. Karnataka's coffee estates from Coorg to Chikkamagaluru ramped up production specifically for European markets. Kerala's spice and seafood exporters diversified into Swiss channels they previously couldn't access profitably.

This strong growth in cashew exports across export destinations continues to drive economic growth and employment generation in India's key cashew-growing states. The cashew industry has large economic significance as it employs more than 10 lakh people on farms and factories in rural areas. Women comprise roughly 50% of the agricultural workforce in these sectors, meaning TEPA's benefits reach households that typically see fewer formal employment opportunities.

Early Verdict on TEPA's Promise

Three months provides limited data, but the patterns are instructive. TEPA delivered precisely what trade economists predicted: not dramatic across-the-board increases, but significant shifts in specific product categories where tariff reductions tipped competitive balances.

The agricultural sector responded fastest, likely because these exporters maintained excess capacity and could scale quickly once Swiss market access improved. Manufacturing sectors, requiring longer lead times and more complex supply chain adjustments, may show TEPA effects in 2026 data.

Switzerland's relatively small market size — collectively, EFTA members Switzerland (USD 145 million), Norway (USD 27 million), and Iceland (USD 3 million) import coffee worth USD 175 million annually — means these gains, while significant for affected Indian exporters, represent modest shifts in global trade patterns.

The real test comes as TEPA's phased tariff reductions continue. Some will be removed immediately once TEPA comes into force on October 1, 2025; others will be phased out over three, five, seven, or 10 years. India's manufacturing sectors may need this longer timeline to reorganize supply chains and capture TEPA's full potential across the EFTA bloc.

Data source: Swiss Federal Customs (SITC Rev.5), Oct-Dec 2024 vs Oct-Dec 2025 comparison