By DK Giri
Swiss President Guy Parmelin’s return to India so soon, he said, was “both a pleasure and a testament to the excellent state of bilateral relations.”
On a three-day state visit, his second trip this year after attending the AI Impact Summit in February, Parmelin is arriving as countries increasingly look to India’s fast-growing market. On October 7, the World Bank raised India’s FY27 growth forecast to 7.1%, the fastest among major economies. For Switzerland, a capital- and technology-intensive economy, deeper engagement offers clear opportunities. Parmelin said the visit aimed to strengthen cooperation and unlock new opportunities for both countries.
The visit comes as the India-EFTA Trade and Economic Partnership Agreement (TEPA), signed on March 10, 2024, after 16 years of negotiations, enters its second year of implementation. The European Free Trade Association comprises Iceland, Liechtenstein, Norway and Switzerland. EFTA committed to invest $100 billion and generate one million direct jobs over 15 years. Switzerland is India’s largest trade and investment partner within the bloc, making the second India-EFTA Prosperity Summit in New Delhi an opportunity to assess progress.
The partnership already has a substantial business footprint. According to Ministry of External Affairs Secretary (West) Sibi George, more than 340 Swiss companies have subsidiaries, joint ventures or liaison offices in India. Of these, 110 have manufacturing operations, 30 run research and development centres, and 74 use India as an export hub. Swiss and other EFTA companies have undertaken 150 promotional activities since 2024, with investments spanning logistics, finance, manufacturing, pharmaceuticals, biotechnology, precision instruments and electronics. During the visit, India and Switzerland announced five memoranda of understanding covering sustainable infrastructure, young professionals, innovation, technology transfer and entrepreneurship.
Prime Minister Narendra Modi described TEPA as an “ambitious blueprint for investment, innovation, jobs and shared prosperity.”
The human dimension is important, too. Under the Migration and Mobility Partnership Agreement, the Young Professionals Scheme will allow temporary employment exchanges to help participants develop professional and language skills. The scheme provides for 300 participants annually from each country, potentially rising to 500. For India’s young workforce, it offers a route to international experience and skills development.
Research cooperation could also deliver long-term gains. A Letter of Intent between India’s Department of Science and Technology and the Swiss National Science Foundation aims to support scientific collaboration and future joint research. India spends around 0.7% of GDP on research and development, compared with more than 3% in Switzerland. Combining Swiss research expertise with India’s scientific talent and scale could strengthen innovation.
Pharmaceuticals, however, require careful attention. Indian companies have raised concerns that intellectual property provisions could threaten access to affordable generic medicines. The Swiss side has argued that TEPA does not restrict access and can facilitate low-cost medicines. Both sides must ensure that standards are respected without undermining affordable treatment. India’s manufacturing base and growing biotechnology sector complement Switzerland’s strength in research and innovation.
Financial transparency remains another sensitive issue, given the longstanding perception of Swiss banks as repositories of undisclosed Indian wealth. Automatic exchange of tax and account information has been in place since 2019, alongside information-sharing on request. Sustaining public confidence requires continued cooperation. Switzerland has also reiterated its commitment to international standards against terrorism financing, including through virtual assets and underground banking.
The visit’s symbolism is visible at Noida International Airport in Jewar, a subsidiary of Zurich Airport International AG. Swiss involvement in Indian infrastructure could expand into green technology and artificial intelligence.
In sum, this is not a ceremonial visit. It is a follow-through visit. From AI Impact Summit in February to TEPA anniversary in October, Switzerland is moving from promise of USD 100 billion to projects on the ground. For India, which saw its exports to EFTA dip 10.7% to $1.75 billion in FY26 after TEPA came into force, the real test is whether market access improves. For Switzerland, the test is whether its 340 companies can convert India’s 7.1% growth into shared prosperity. Both sides seem willing to try.
The writer is Professor of Practice, Institute of Management, Bhubaneswar.