NEW DELHI: India and Switzerland will set up a “special group” to review their free trade agreement and address trade and investment concerns, including New Delhi’s demand for greater market access for marine and agricultural products.
The decision was taken during talks between Prime Minister Narendra Modi and visiting Swiss President Guy Parmelin in New Delhi on Monday, marking the first anniversary of the India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA).
From New Delhi’s perspective, TEPA’s performance in its first year has been underwhelming. The expert group will study constraints hindering trade and investment flows under the pact. The two sides will review TEPA’s performance and chart its future course during the remaining two days of Parmelin’s three-day visit to India.
Switzerland is India’s largest trading partner among the four EFTA members, the others being Iceland, Liechtenstein and Norway. TEPA came into force on October 1, 2025, and was India’s first free trade agreement with a European grouping.
Parmelin said Switzerland hoped to conclude an investment protection agreement with India soon to facilitate greater investment flows into various sectors. “To further stimulate investment, Switzerland hopes to conclude an investment protection agreement soon. In this context, achieving results in discussions on intellectual property protection is equally important,” he said.
After the Modi-Parmelin talks, India and Switzerland signed five pacts covering areas including research, migration and mobility. The two sides also discussed expanding defence ties and cooperation in civil nuclear energy.
Modi described TEPA as an “ambitious blueprint”. The agreement envisages $100 billion in investment and one million direct jobs in India over the next 15 years.
Modi said the two leaders had taken several decisions to expand market access for Indian exports to Switzerland. “This will increase India’s exports of agriculture, pharmaceuticals, textiles and engineering goods to Switzerland. At the same time, we will attract new Swiss investment in key sectors like biotech, life sciences, banking, insurance, food processing, and sustainability,” he said.
Modi also highlighted Swiss assistance in constructing the ropeway in Varanasi, the Jewar Airport in Noida, and railways and tunnelling projects in hilly areas. An agreement was signed for collaboration on transport and infrastructure.
“We invite Swiss infrastructure companies to invest in India on a large scale, and to participate in capacity building, design, and manufacturing,” Modi said. Parmelin will visit Noida International Airport at Jewar on Tuesday.
The migration and mobility agreement provides for multiple-entry visas of up to five years, including stays of up to six months on each visit, and renewable one-year student permits. The agreement on the exchange of young professionals provides for the exchange of 300 people annually from each country, which may be increased to 500.
Source: Business Standard
