Swiss Companies Eager to Strengthen Presence in India Ahead of FTA Rollout
Swiss Companies Set Their Sights on Expanding in India as FTA with EFTA Approaches Execution
As the implementation of the free trade agreement (FTA) between India and the European Free Trade Association (EFTA) looms closer, Swiss enterprises are keen on broadening their operations in India. With an ambitious investment of $100 billion planned over the next 15 years, sectors such as biotechnology, pharmaceuticals, and engineering are aligning closely with India’s growth aspirations, positioning the country as an essential center for global value chains and innovation. Notably, Switzerland stands out as India’s largest trading partner within the EFTA framework. (Reuters)
Joint Ventures and Local Production on the Horizon
Several Swiss corporations are eager to establish joint ventures with Indian firms, enhance their operational footprint in India, and localize production to cater to the international market. This surge in investment interest is largely driven by the forthcoming free trade agreement between India and the four-member EFTA, which is anticipated to come into effect by September. Piyush Goyal, India’s Minister of Commerce and Industry, is currently on a five-day visit to Switzerland and Sweden, where he has met with various industry representatives in the Swiss capital, Bern, showcasing their interest in expanding their presence in India.
Details of the Trade and Economic Partnership Agreement (TEPA)
The growing investment attraction is rooted in a stipulation included in the FTA, formally known as the Trade and Economic Partnership Agreement (TEPA), which outlines that EFTA member countries will invest $100 billion into India over a span of 15 years. In exchange, India has proposed enhanced access to its markets for EFTA businesses. Signed in March 2024, the TEPA is currently progressing through the ratification process. Goyal has conducted two round-table discussions with Swiss business leaders from sectors including biotechnology, pharmaceuticals, healthcare, precision engineering, defense, and emerging technologies. Additionally, he co-chaired a business round table with Swiss Federal Councillor Guy Parmelin, engaging representatives from the machinery, electrical, and metal industries. Both officials also held a bilateral meeting.
Strategic Alignment and Long-term Commitment
According to a statement from the Ministry of Commerce and Industry, Swiss firms highlighted their alignment with India’s developmental goals and sector-specific growth strategies, ranging from advanced cancer therapies and cell science to industrial automation, fiber optics, space technology, and digital security. The overall sentiment was one of strategic alignment and a commitment to long-term collaboration. Numerous participants characterized India as a natural ally, expressing their intent to invest in the nation’s forthcoming growth phase—not only to meet domestic demand but also to establish India as a key player in their global value chain networks.
Innovation and Sustainable Manufacturing Focus
Discussions also revolved around fostering synergies between Indian and Swiss enterprises, placing a particular focus on innovation, technology transfer, and sustainable manufacturing practices. Minister Goyal urged Swiss companies to see India not merely as a market but as a pivotal hub for manufacturing, talent cultivation, and innovation. He reiterated India’s commitment to pursuing regulatory harmonization and mutual recognition agreements, showcasing the nation’s proactive approach to building reciprocal pathways for encouraging investments between Swiss and Indian businesses.
Looking Ahead to Sweden and Future Collaborations
During the Swedish portion of his trip, Goyal plans to engage with political and industry leaders to review the current state of economic cooperation and pinpoint new avenues for collaboration. The minister is scheduled to wrap up his visit to both nations on Friday.
