In a significant development for global trade and investment, India and Switzerland have stepped up bilateral cooperation, especially in pharmaceuticals, biotech, and manufacturing, building on the recently activated India - EFTA Trade & Economic Partnership Agreement (TEPA). The recent meetings between officials from both countries signal a renewed intent to deepen collaboration, attract investments, and leverage India’s growing manufacturing and healthcare ecosystem.

Background: TEPA and Its Promise

• TEPA - the free-trade agreement between India and the member states of European Free Trade Association (EFTA), including Switzerland - officially came into effect in October 2025.

• Under TEPA, the EFTA bloc has pledged to commit US $100 billion in investments over 15 years, along with a target of generating one million direct jobs in India.

• The agreement provides enhanced market access, reduced tariffs on non-sensitive goods, streamlined customs and trade facilitation, strengthened protections for intellectual property, and opportunities for services trade and investment promotion.

TEPA represents a strategic pivot in India’s trade policy - aiming to diversify trade partners beyond the usual blocs, integrate with European economies, and attract high-value investment and technology flows.

Pharma & Biotech: Switzerland Eyes India as a Hub

On 27 November 2025, Piyush Goyal, India’s Union Commerce and Industry Minister, met with Helene Budliger Artieda, Switzerland’s State Secretary for Economic Affairs, alongside a high-level delegation of Swiss pharma and biotech firms.

During discussions, both sides identified multiple avenues for cooperation:

• Joint R&D and innovation in pharmaceuticals and biotechnology, leveraging India’s scale and cost efficiencies alongside Swiss technical expertise. Expansion of investment opportunities for Swiss companies in India’s robust and expanding healthcare sector.

• Leveraging regulatory reforms and trade facilitation under TEPA to support industrial collaboration and export-oriented production from India.

The conversation reflects a strategic belief that India with its rising demand for affordable medicines, a large domestic market, and improving regulatory and manufacturing landscape can emerge as a global hub for pharma and biotech production with Swiss partnership.

Beyond Pharma: Wider Economic and Investment Cooperation

While pharmaceuticals lead the current wave, the scope of collaboration under TEPA and recent diplomatic engagements extends to:

• Manufacturing, precision engineering, and high-value exports - Switzerland has long-standing strengths in precision instruments, machinery, and high-technology manufacturing; such sectors may now look at India as a cost-efficient manufacturing and export base.

• Technology transfer, skill development, and innovation ecosystems - joint R&D, shared expertise, and regulatory alignment could support newer sectors such as biotech, medical devices, and high-end manufacturing.

• Job creation and economic growth - with the $100 billion commitment and promise of one million jobs over 15 years, TEPA aims to stimulate employment, exports, and industrial expansion.

Swiss investors, under the agreement, are encouraged to view India not simply as a consumer market, but as a strategic production hub, leveraging India’s scale, cost structure, and improving investment climate.

What Swiss Entities Want: A Bilateral Investment Treaty (BIT)

During the recent engagements, State Secretary Artieda urged India to negotiate a dedicated Bilateral Investment Treaty (BIT) with Switzerland. She argued that a BIT would provide stronger legal protections for investors, facilitate smoother investment flows, and lend greater confidence to Swiss businesses considering long-term commitments in India.

For many Swiss firms, such a treaty would complement TEPA’s trade and tariff benefits by offering additional safeguards and market predictability - especially for sectors like pharma, biotech, precision engineering, and specialized manufacturing where long-term capital and regulatory clarity are critical.

Significance for India - Strategic, Economic, and Industrial

1. Access to capital & technology: Swiss investments bring capital, advanced R&D practices, and technology - enabling India to upgrade its domestic manufacturing and innovation capabilities.

2. Boost to pharma exports: With global demand for generics and affordable medicines rising, Swiss-backed manufacturing plus free-trade access may position India as an export hub.

3. Job creation & industrial growth: The large-scale investment commitment under TEPA could generate substantial manufacturing and service-sector employment, particularly in high-skill industries.

4. Diversified trade relations: Strengthening ties with European markets diversifies India’s export destinations and reduces reliance on traditional trade partners.

5. Regulatory & IP improvement: Engagement with mature economies can accelerate reforms in regulation, intellectual property regime, quality standards, and global compliance - beneficial long-term for India’s industrial ambitions.

Challenges & Considerations Ahead

Despite the promise, several challenges remain:

• Legal protections under TEPA vs BIT: While TEPA facilitates trade and investment, it does not fully replicate investor-protection frameworks often found in traditional BITs. Full protection may require additional treaty negotiations.

• Regulatory, compliance and intellectual property issues: For pharmaceutical and biotech collaboration, aligning regulatory standards, ensuring data protection and IP security, and maintaining manufacturing quality will be vital.

• Geopolitical and market risks: Global economic turbulence, currency fluctuations, and shifting trade policies in Europe or India could affect investor confidence and project viability.

• Implementation and monitoring of investment commitments: Delivery of the pledged $100 billion over 15 years will require robust monitoring mechanisms and transparent frameworks to ensure commitments translate into real projects and job creation.

What’s Next: Key Expectations

• Negotiation and signing of a Bilateral Investment Treaty between India and Switzerland to augment TEPA.

• Launch of joint R&D and manufacturing ventures in pharma, biotech, medical devices, and precision manufacturing.

• Increase in Swiss FDI flows into India’s healthcare, biotech, manufacturing, and export-oriented sectors.

• Expanded job creation and skill development through new plants, facilities, and technology transfer.

• Growth in India’s exports to Europe especially high-value goods and specialized chemicals, pharmaceuticals, and machinery leveraging tariff concessions under TEPA.

Conclusion

The recent round of high-level engagements between Indian and Swiss leadership marks a pivotal moment in bilateral economic relations. With TEPA now in force, and strong signals from both governments and industry on both sides, India stands poised to benefit from significant Swiss investments in pharma, biotech, manufacturing, and high-tech industries.

If effectively implemented, these developments could help transform India into a global manufacturing and R&D hub, boost exports, create thousands of jobs, and deepen integration with European markets all while maintaining a balanced, sustainable, globally competitive growth trajectory.

This renewed India–Switzerland partnership reflects not just a trade agreement, but a long-term strategic alliance with the potential to reshape how global goods, innovation, and healthcare converge.