Recently, Switzerland has officially ratified the landmark Trade and Economic Partnership Agreement (TEPA) with India and the European Free Trade Association (EFTA), which includes Iceland, Liechtenstein, Norway, and Switzerland.

Key Provisions of TEPA

• Trade Barriers Reduction: Aimed at reducing trade barriers and streamlining customs procedures.
• Market Access: Increased access for Swiss exports in the Indian market.
• Investment Commitment: EFTA states (Iceland, Liechtenstein, Norway, Switzerland) commit to USD 100 billion investment in India over the next 15 years.

Impacts of the Agreement

• Job Creation: The agreement is expected to generate 10 lakh jobs across India.
• Economic Growth: A “win-win” situation for all participating countries due to increased investments and job creation.
• Swiss Investments in India: Switzerland is currently the 12th-largest investor in India.
• Growth in Swiss Investments: Swiss investments in India have risen from ₹5,935 crore in 2000 to ₹1,07,736 crore in 2024.
• Swiss Companies in India: Over 330 Swiss companies operate in India, spanning sectors like engineering, precision instruments, chemicals, pharmaceuticals, and services.

Strategic Domains of Cooperation

• Innovation and Research: The Swiss-Indian Innovation Platform was launched in Bengaluru in October 2023.
  • It connects Indian Institutes of Technology (IITs) with Swiss technical universities and the private sector to drive joint research, innovation, and commercial partnerships.
• Global Challenges Collaboration: Both countries are collaborating on global issues like climate change, disaster-risk reduction, and environmental sustainability.

Bilateral Relations and Institutional Collaboration

• Long-term Partnership: India and Switzerland have had a formal partnership for 77 years since the signing of the Treaty of Friendship.
• Institutional Collaboration: The Swiss government has focused on the successful implementation of TEPA, with initiatives like the EFTA desk launched in February 2025 to facilitate smoother investments.
• Coordination with Authorities: Strengthening partnerships with business associations and coordinating with Indian authorities at central and state levels to support the implementation process.

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