India and Switzerland enjoy win-win trade relations, where India offers scale and a growing market while Switzerland provides strength in precision engineering and advanced manufacturing. Swiss expertise can play a key role in fostering India’s manufacturing expansion and digital economy. The visit of Swiss President Guy Parmelin to India gives both sides an opportunity to discuss ways to promote bilateral trade as the India-EFTA Trade and Economic Partnership Agreement (TEPA) completes one year.
India–EFTA TEPA to Foster Economic Prosperity
EFTA has committed USD 50 billion in the next 10 years and another USD 50 billion in the following 5 years, creating over one million direct jobs. EFTA companies are expected to bring technology and R&D capabilities to Indian companies. It will also promote India’s supply chain and integration with its SME sector.
Further, it will shift India’s expertise from assembly and processing to design, engineering and advanced manufacturing.
This is also advantageous for Switzerland, as India has a vast pool of engineers and IT professionals, which will open new opportunities in IT and business services.
The two nations are moving from traditional cooperation in pharmaceuticals and finance to AI, clean energy and life sciences.
India can also learn from Switzerland in the transport and infrastructure sector, in which they already cooperate, as in the Swiss-linked Zurich Airport’s involvement at Noida International Airport.
Indo-Swiss Trade at a Glance
- October 1, 2025: TEPA entered into force; the October 2026 Swiss presidential visit coincides with its first anniversary.
- 92.2%: EFTA’s market-access offer covers 92.2% of its tariff lines, representing 99.6% of India’s exports.
- $100 billion: EFTA’s investment target in India over 15 years under TEPA.
- 1 million: direct jobs EFTA aims to facilitate in India through these investment inflows.
- $50 billion + $50 billion: investment objective of $50 billion during the first 10 years and another $50 billion during the following five years.
- 150,000: approximate direct jobs created in India by Swiss companies, according to Swiss government estimates.
- 155: approximate number of Indian companies with subsidiaries in Switzerland; technology and life sciences are major areas of activity.
- 7.7%: average annual growth in India–Switzerland services trade between 2015 and 2024.
- $6.884 billion: India’s services exports to Switzerland in 2024, according to India’s Commerce Ministry.
Challenges to the Trade Relations
The two nations still have many challenges. India wants to open market access to Swiss companies while protecting domestic interests. For this reason, India retained protection for several sectors including dairy, coal and soya.
Swiss companies entering the Indian market may face stiff competition in sectors such as pharmaceuticals, engineering and services. Another challenge is deciding whether to boost manufacturing in India or simply export products.
Further, they must adapt their products to India’s cost structures and diverse market segments.
Trade relations between the two nations are on an upward trajectory, but real success depends on how well India attracts the committed investment and how well Switzerland adapts to the Indian market.
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