India and Switzerland have established a special group to review the performance of the Trade and Economic Partnership Agreement (TEPA) during the first anniversary of the landmark trade deal. According to Business Standard, this expert group will examine constraints hindering trade and investment flows under TEPA as India seeks greater market access for its agricultural and marine exports. The group's formation comes after India's first free trade pact with any European country or bloc has been underwhelming in its first year of operation. The two countries agreed to set up this special group to discuss trade- and investment-related concerns during the remaining two days of Swiss President Guy Parmelin's three-day state visit to India.
The bilateral trade and investment ties received a significant boost following the coming into force in October of the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) States of Iceland, Liechtenstein, Norway and Switzerland. As reported by Business Standard, PM Modi described the TEPA as an 'ambitious blueprint' for investment, innovation, jobs, and shared prosperity. The agreement provides comprehensive market access with 92.2% of tariff lines covering 99.6% of India's exports, including 100% of non-agricultural products. Modi announced that India will increase its exports of agriculture, pharmaceuticals, textiles and engineering goods to Switzerland, while attracting new Swiss investment in key sectors like biotech, life sciences, banking, insurance, food processing, and sustainability. The Swiss leader noted that Switzerland hopes to conclude an investment protection agreement with India soon to facilitate greater flow of investments into various sectors of the Indian economy.
The agreements cover multiple sectors with significant potential for bilateral cooperation. According to Business Standard, the migration and mobility partnership agreement provides for multiple-entry visas for up to five years, including stays of up to six months on each visit, and renewable one-year student permits. The young professionals exchange agreement allows for the exchange of 300 people annually per country, which may increase to 500. Modi highlighted that over 330 Swiss companies are currently operating in India in sectors such as engineering, services, precision instruments, chemicals and pharmaceuticals, while Indian companies are present in Switzerland in sectors such as IT, pharmaceuticals, and machinery. The transportation and infrastructure agreement invites Swiss infrastructure companies to invest in India on a large scale and participate in capacity building, design, and manufacturing projects. Modi specifically highlighted Swiss assistance in constructing the ropeway in Varanasi, the Jewar Airport in Noida, and railway and tunnelling projects in hilly areas.
The India-EFTA trade deal, signed on March 10, 2024, provides comprehensive market access with 92.2% of tariff lines covering 99.6% of India's exports, including 100% of non-agricultural products. As reported by Business Standard, Goyal emphasized that India has safeguarded sensitive sectors such as dairy, soya, coal and agricultural products. The agreement includes a binding commitment to facilitate $100 billion in foreign direct investment and create one million direct jobs in India over 15 years. During Parmelin's June 2026 visit to Switzerland, discussions covered pharmaceuticals, biotechnology, innovation, and civil nuclear energy cooperation. The prime minister described innovation, infrastructure and advanced technology as 'strong pillars of India-Switzerland partnership', with both sides giving engagement a 'new impetus'. The Swiss President is accompanied by a large delegation of high-ranking business leaders, with the Swiss leader stating that achieving results in discussions on intellectual property protection is equally important.
The visit has established a comprehensive framework for future cooperation across multiple sectors. According to Business Standard, Modi announced that new joint research projects in priority areas such as health, clean energy, and space will be launched soon. The prime minister emphasized that both sides support all meaningful efforts toward peace in Ukraine and West Asia, with India supporting every meaningful effort towards peace. Modi extended his best wishes to Switzerland for hosting the next edition of the AI Summit next year, following India's hosting of the world's largest AI Summit in February. The 2nd India-EFTA Prosituation: Future Cooperation and Global Engagementopera Summit on Wednesday will serve as an important platform to translate the promise of trade and investment partnership into concrete outcomes, building upon the regular high-level exchanges and deepening cooperation in new areas of mutual interest.
