Switzerland has officially ratified the landmark Trade and Economic Partnership Agreement (TEPA) with India, finalizing a transformative trade pact between India and the European Free Trade Association (EFTA) nations — Iceland, Liechtenstein, Norway, and Switzerland. The agreement is expected to come into force by October and is poised to significantly boost economic cooperation and trade flows between the two regions.
Announcing the development, Swiss Ambassador to India Maya Tissafi termed the ratification a “significant milestone” in the bilateral relationship, marking a new chapter in India-Switzerland ties. The agreement, signed in March 2024 after nearly 16 years of negotiations, will reduce trade barriers, streamline customs procedures, and increase access for Swiss exports in the Indian market.
A cornerstone of the agreement is the commitment by EFTA states to invest $100 billion in India over the next 15 years. This massive inflow of investment is projected to generate one million (10 lakh) jobs across India, creating a “win-win situation” for all participating countries, according to the Swiss envoy.
Switzerland has already emerged as a prominent investor in India, currently ranking as the 12th-largest source of foreign direct investment. Swiss investments have grown from ₹5,935 crore in 2000 to ₹1,07,736 crore in 2024. Over 330 Swiss companies are now active in India, spanning sectors such as engineering, precision instruments, chemicals, pharmaceuticals, and services. Indian companies also have a growing footprint in Switzerland, especially in IT, machinery, and pharma.
Ambassador Tissafi emphasized the Swiss government’s focus on the successful implementation of TEPA. Initiatives like the establishment of the EFTA desk in February aim to facilitate smoother investments. Partnerships with business associations and coordination with Indian authorities at central and state levels are being strengthened to support this process.
Beyond trade, India and Switzerland are deepening their relationship across several strategic domains. The two countries have enjoyed a formal partnership for 77 years since the signing of the Treaty of Friendship. Today, they are collaborating on global challenges including climate change, disaster-risk reduction, and environmental sustainability.
An important step in fostering long-term ties is the Swiss-Indian Innovation Platform launched in Bengaluru in October 2023. The platform connects Indian Institutes of Technology (IITs) and Swiss technical universities with private sector leaders from both countries to drive joint research, innovation, and commercial partnerships.
