India (Commonwealth Union)_ Swiss President Guy Parmelin visited India this month at the invitation of Prime Minister Narendra Modi. The three-day state visit focused on expanding trade, attracting investment, strengthening technological cooperation and improving opportunities for skilled professionals. Accompanied by senior officials and business leaders, Parmelin sought to build on the long-standing relationship between the two countries. The visit was particularly significant as India and Switzerland marked the first anniversary of the Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA). The agreement offers both countries an opportunity to expand commercial ties, encourage investment and create jobs. Parmelin’s visit also reflected a shared interest in developing cooperation in emerging technologies, clean energy, research and infrastructure.
A warm welcome in New Delhi
Parmelin received a ceremonial welcome at Rashtrapati Bhavan, where President Droupadi Murmu and Prime Minister Modi greeted him. A tri-service Guard of Honour was presented to the visiting leader, reflecting the importance that India attached to his visit. Earlier, Minister of State for Road Transport and Highways Ajay Tamta received Parmelin at the airport. The Swiss President also visited Rajghat to pay floral tributes to Mahatma Gandhi. Speaking after the ceremonial reception, Parmelin described the visit as an opportunity to underline the importance both countries placed on their relationship. He highlighted their shared democratic values, trust and mutual respect. His remarks reflected the wider purpose of the trip: to turn an established friendship into a stronger economic and strategic partnership.
Gifts that show cultural connections
The visit had a cultural dimension with the exchange of gifts between the two leaders. Modi presented Parmelin with three Indian cheeses: Gulmarg, Konark and Yeoor. Each product was a different interpretation of European cheesemaking traditions adapted by Indian producers. Gulmarg is a soft Brie style cheese whereas Konark is inspired by French Tomme cheese. Yeoor is aged several months and modeled after Swiss Gruyere. The choice provided a thoughtful link between India’s growing speciality food sector and Switzerland’s historic association with cheese production. Modi also gifted Parmelin a hand-carved Kashmiri walnut wood panel featuring traditional landscapes and scenes of village life. Parmelin’s wife, Caroline Parmelin, received a Kutchi shawl presented in a Sadeli box. These gifts showcased India’s regional craftsmanship and cultural diversity while adding a personal touch to the diplomatic engagement.
Trade talks dominated the bilateral meeting
Trade and investment took center stage during talks between Modi and Parmelin. The two leaders discussed ways to improve market access, develop business partnerships and expand cooperation in areas with strong potential. Modi pointed out the significance of the TEPA, which is expected to attract investments worth $100 billion from the EFTA countries over the next 15 years and create one million direct jobs in India. He described the agreement as an important framework for investment, innovation and shared economic growth. The leaders discussed measures to improve access for Indian agricultural products, pharmaceuticals, textiles and engineering goods in Switzerland. They also examined opportunities for Swiss companies to invest in biotechnology, life sciences, banking, insurance, food processing and sustainability.
These discussions could benefit businesses on both sides. Indian exporters will have opportunities to tap into a high-value European market, and Swiss companies can use India’s manufacturing capabilities, skilled workforce and growing consumer market to boost their growth. The two countries also discussed cooperation in defense production, military exchanges and nuclear power. Additionally, discussions on the conflicts in Ukraine and West Asia highlighted their shared support for dialogue and diplomacy as a means of promoting international peace and stability. External Affairs Minister S. Jaishankar separately met Parmelin to discuss bilateral relations and opportunities emerging from the India-EFTA economic partnership.
Five agreements signed to expand cooperation
A major outcome of the visit was the signing of five agreements covering migration, professional exchanges, transport, scientific research and innovation. The Migration and Mobility Partnership aims to improve cooperation on the movement of people between the two countries. The Agreement on the Exchange of Young Professionals is intended to create opportunities for young people to gain international work experience and develop professional skills. Another agreement focuses on transportation technologies, mobility systems and infrastructure. It provides a framework for sharing expertise in areas where Swiss engineering and India’s infrastructure development needs could complement each other.
The remaining arrangements focus on scientific research and innovation. A Letter of Intent between the Department of Science and Technology of India and the Swiss National Science Foundation aims to promote research cooperation. An implementation arrangement will support innovation, technology transfer and entrepreneurship. Together, these agreements extend the relationship beyond conventional trade. They create opportunities for businesses, researchers, professionals and institutions to work more closely, potentially supporting productivity, employment and the exchange of knowledge.
India-EFTA Prosperity Summit advances economic ties
The second India-EFTA Prosperity Summit provided another important platform for strengthening commercial relations. Government representatives, ministers and business leaders from India and EFTA member states discussed opportunities created by the trade agreement and examined ways to increase investment. Union Minister Ashwini Vaishnaw said there was an increasing interest among European companies in establishing manufacturing, design, production and research facilities in India. Such investments could help share technology, support local industry and integrate Indian businesses into global supply chains. There could also be new opportunities for Indian micro, small and medium enterprises through greater cooperation with EFTA companies.
Additionally, smaller businesses could connect with modern technology, overseas markets and new business partnerships. The sectoral discussions covered advanced manufacturing, healthcare & life sciences, the blue economy, maritime industries, clean energy and climate innovation. These areas reflect the potential for both countries to combine Swiss technical expertise with India’s industrial capacity and growing demand. Commerce Secretary Rajesh Agrawal urged Indian exporters, industry associations and state governments to make fuller use of TEPA. The agreement offers extensive tariff coverage for Indian exports to EFTA markets, but businesses must understand market requirements and develop targeted export strategies to benefit from it.
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TEPA provides a long-term economic opportunity
TEPA was signed in March 2024 after nearly 16 years of negotiations and entered into force on 1 October 2025. The accord was a significant step in India’s economic engagement with Switzerland, Iceland, Liechtenstein and Norway. The accord saw EFTA countries commit to an investment target of $100 billion in India over 15 years and also aimed to support one million direct jobs. However, continued investment, effective implementation and greater engagement from business will be needed to make these ambitions a reality. Switzerland is India’s largest trading and investment partner among the EFTA members.
More than 330 Swiss companies operate in India across sectors such as engineering, pharmaceuticals, chemicals, precision instruments and services. Their presence has already generated substantial employment. Switzerland’s investment in India could increase further as companies seek reliable manufacturing locations and access to a large domestic market. Meanwhile, Indian companies could see more chances to export to Switzerland, especially in pharmaceuticals, textiles, engineering products, agricultural goods and speciality manufacturing. The agreement’s success will ultimately depend on whether businesses can convert its provisions into actual trade, investment and employment.
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A relationship built over decades
India and Switzerland established diplomatic relations in 1948 through a Treaty of Friendship. Their commercial ties are even older and echo a relationship defined by changing tides in global trade and industry. The bilateral trade was around $23.27 billion in the financial year 2024-2025, and Switzerland is one of the important trading partners for India. India’s exports are machinery, agricultural products, chemicals, jewelry, textiles and pharmaceuticals. Swiss exports include pharmaceuticals, chemicals, machinery and precision engineering, transport equipment and watches.
Switzerland’s foreign direct investment in India amounted to approximately $10.87 billion between April 2000 and June 2025. Swiss companies have also created more than 166,000 jobs in India, demonstrating their important role in employment and industrial development. Such existing links provide a good basis for further cooperation. However, the next stage of the relationship will require both governments and businesses to focus on implementation, practical market access and projects that deliver measurable economic benefits.
A stepping stone towards stronger ties
Parmelin described his India visit as a stepping stone towards a closer and broader partnership. The agreements signed during the trip, the discussions at the bilateral meeting and the India-EFTA Prosperity Summit gave practical direction to that ambition. The visit demonstrated that India-Switzerland relations extend beyond diplomatic goodwill. Trade, investment, professional mobility, scientific research and infrastructure now offer important avenues for deeper cooperation.
In terms of capital attraction, access to cutting-edge technology and employment creation, India can benefit from greater engagement with Switzerland. India is a growing market for Switzerland, a widening industrial base and opportunities to diversify production and improve supply chains. The long-term impact will depend on the ability to turn commitments into projects and commercial results. If both countries continue to work, Parmelin’s visit could help turn a friendship into a more dynamic economic partnership with lasting benefits for businesses, workers and both national economies.
