India and Switzerland have enjoyed a long and amicable relationship since India’s Independence, with a strong foundation built on shared values of democracy and the rule of law.
This year marks the 75th anniversary of the Treaty of Friendship between the two countries. It was signed in New Delhi on August 14, 1948, making it one of the first such treaties to be established by independent India and a significant milestone in Indo-Swiss relations.
During thick and thin
The commercial ties between India and Switzerland have a rich history dating back to the early 19th century. In 1851, the Volkart Trading Co. established offices in Basel and Mumbai, initiating commercial contacts between the two nations.
During the turmoil of World War I in 1915, Switzerland strategically set up consulates in various locations worldwide, including Mumbai, to secure food and economic prospects.
The Integral Coach Factory (ICF) in Chennai, which was set up based on a 1949 agreement between the Indian Government and the Swiss Cars and Elevators Manufacturing Ltd. Zurich, celebrated its diamond jubilee in September 2015.
Over the years, the ICF has expanded its network and diversified its activities, playing a crucial role in Switzerland’s economic presence in India.
The 1948 treaty laid the groundwork for a robust economic dimension to the bilateral relationship. Key articles in the treaty, particularly Article 3 to 6, provided Switzerland with the “most favoured foreign nation treatment.”
Bilateral trade volume
As of fiscal 2021-22, India stands as Switzerland’s seventh largest trading partner, while Switzerland ranks as the 12th largest investor in India. The bilateral trade volume between the two countries reached approximately $25 billion. Additionally, trade in services amounted to about $2 billion.
Around 100 Indian companies operate in Switzerland, collectively generating an approximate cumulative turnover of Swiss franc 3-3.25 billion and employing approximately 4000 people. The IT services and consultancy, pharmaceutical, and equipment and machinery sectors are prominently represented among these companies.
The bilateral trade showcases a diverse range of goods. Major Indian exports to Switzerland include organic chemicals, pearls, precious stones and jewellery, textiles and garments, dyestuff, electrical machinery and parts, leather products, shoes, shoe uppers, cotton, plastics, and coffee. Swiss exports to India consist of chemicals & pharmaceuticals, machinery, transport equipment, precision engineering products, and watches, besides bullion.
