Switzerland–India: What the TEPA free trade deal must now deliver
The presidential visit sets a political signal. But tangible benefits only emerge once market opening, investment and exchange reach everyday life.
A state visit is not yet an economic success. But it can make visible what now matters in the Trade and Economic Partnership Agreement TEPA between Switzerland, the other EFTA states and India. On 5 October, President Guy Parmelin met Indian President Draupadi Murmu and Prime Minister Narendra Modi in New Delhi. Both sides described the implementation of the agreement, in force since 1 October 2025, as on schedule.
The concrete outcome of the meeting: Switzerland and India concluded an agreement on migration and mobility as well as one on the exchange of young professionals. The second is intended to enable young people to complete training or further education stays in the other country. Whether genuinely accessible programmes emerge from this depends on the rules, places and procedures that have yet to be communicated. It would therefore be premature to advertise fixed participant numbers or simplified visas at this stage.
TEPA gives Swiss goods and services better access to the Indian market. According to the federal government, this covers 94.7 percent of previous Swiss exports to India, excluding gold. This includes pharmaceutical products, machinery, optical instruments, watches and processed agricultural products. Once the transition periods expire, the federal government expects possible annual customs savings of up to 167 million Swiss francs, based on existing trade.
This figure matters – but it is not a discount promise for purchases in Switzerland. It describes potential customs savings on exports to India. Whether this creates more jobs here, new orders for suppliers or cheaper products depends on companies, exchange rates, competition and investment decisions.
For Switzerland, India has long been more than a distant market economically. In 2025, according to the FDFA, Switzerland exported goods worth 13.2 billion Swiss francs to India and imported goods worth 2.4 billion Swiss francs. At the end of 2024, Swiss direct investment in India stood at 10.2 billion Swiss francs; around 350 Swiss companies are present there. That explains why legal certainty, functioning customs procedures and reliable protection of intellectual property can be relevant for jobs in Switzerland too.
The big benchmark, however, remains a long-term one. The EFTA states aim for investments of 100 billion US dollars in India and for support of one million direct jobs within 15 years. That is a joint EFTA goal, not a Swiss promise alone. After the first year, no one can seriously claim it has been fulfilled or has failed. What will be decisive is whether investments come about on top of existing ones, which sectors benefit and whether progress is reported transparently.
Two central points also remain open: according to the federal government, negotiations on a new bilateral investment protection agreement are advanced but not concluded. Talks on the protection of intellectual property are likewise continuing. This is precisely where the difference between a political intention and reliable framework conditions in day-to-day business becomes apparent.
For the average Swiss citizen, TEPA is therefore neither an abstract summit topic nor an immediately noticeable price lever. It is a bet on broader sales markets, investment and exchange. Whether it pays off can be measured by verifiable data – not by the length of a delegation list.