5 Reasons India is a Growing Investment Destination for Swiss Companies

India’s expanding manufacturing sector, infrastructure development and demand for advanced technologies are creating investment opportunities for international businesses. For Swiss companies, the market offers opportunities to establish local manufacturing operations, develop technology partnerships and participate in industrial projects. According to a Swiss economic expert, Swiss companies plan to invest approximately US$29 billion in India by 2030, potentially generating 400,000 direct and indirect jobs.

The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), which entered into force in 2025, provides a basis for strengthening these commercial ties through improved market access and investment commitments.

India-Switzerland merchandise trade relations

India and Switzerland maintain a substantial merchandise trade relationship, although bilateral trade remains weighted towards Indian imports from Switzerland. Union Ministry of Commerce and Industry data show that total merchandise trade between the two countries increased from approximately US$17.16 billion in FY 2022-23 to US$25.48 billion in FY 2025-26.

During this period, India’s imports from Switzerland increased from US$15.79 billion to US$24.27 billion. Indian exports to Switzerland, meanwhile, amounted to US$1.21 billion in FY 2025-26.

Source: Department of Commerce, Ministry of Commerce and Industry, GoI.

These figures indicate that India’s imports from Switzerland have increased consistently over the four financial years. The difference between the two trade flows also highlights the scope for Indian businesses to expand their export presence in the Swiss market.

Swiss investment in India: Existing presence and future commitments

Switzerland remains an established foreign investor in India. Between April 2000 and June 2026, cumulative FDI equity inflows from Switzerland reached approximately US$11.57 billion, placing the country 12th among India’s leading sources of FDI equity inflows as of June 2026.

Source: Cumulative FDI Data Statements (from January 2000 to June 2026), DPIIT; GoI

At a joint press conference with the President of Switzerland on 5 October 2026, Indian Prime Minister Narendra Modi announced the target of attracting US$100 billion in investment in India and generating one million direct jobs over the next 15 years.

India-EFTA TEPA: Framework for trade and investment expansion

The India-EFTA Trade and Economic Partnership Agreement marks an important development in India’s economic engagement with Switzerland, Norway, Iceland and Liechtenstein.

The agreement provides a framework for improving market access, strengthening trade relations and encouraging long-term investment. Its investment and employment commitments also establish a broader basis for commercial cooperation between India and the EFTA member countries.

For Swiss businesses, TEPA offers an opportunity to evaluate India as both a destination for manufacturing investment and a market for expanding commercial operations. Improved trade arrangements can support business planning, market entry and the development of cross-border supply chains.

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5 reasons why Swiss companies should invest in India

India offers Swiss businesses access to a large consumer market, expanding industrial sectors and opportunities for technology-led investment.

1. Access to a large domestic market

With a population of approximately 1.48 billion, India offers a substantial market for manufactured goods, healthcare products, infrastructure and technology-based services. Its expanding working-age population, with an estimated 150 million additional people expected to enter the workforce in the coming years, will further drive demand for industrial capacity, infrastructure and consumer products.

2. Advanced manufacturing and industrial technology

India’s manufacturing modernisation creates opportunities for Swiss companies specialising in precision engineering, industrial automation, measurement technologies and advanced manufacturing equipment. Businesses can explore local production, technology transfer, research and development, and partnerships with Indian manufacturers.

3. Pharmaceuticals and medical technology

Growing healthcare demand creates opportunities for Swiss pharmaceutical, biotechnology and medical technology companies. Potential areas include pharmaceutical manufacturing, medical devices, healthcare technologies and research collaboration, supported by opportunities for local production and technology partnerships.

4. Infrastructure and sustainable energy

India’s infrastructure development offers opportunities for Swiss companies in transport technologies, engineering and sustainable infrastructure. Key areas include electric mobility, ropeways, tunnel construction, energy solutions and circular economy technologies.

5. Supply chain diversification and market expansion

India can serve as both a domestic sales market and a manufacturing base for Swiss companies seeking to diversify their international operations. Establishing a local presence can help businesses develop supplier networks, strengthen regional distribution and reduce dependence on concentrated production and sourcing locations. These opportunities are relevant to both Swiss SMEs and multinational corporations.

2026 bilateral initiatives strengthening the investment environment

During Swiss President Guy Parmelin’s state visit to India in 2026, the two countries announced five bilateral cooperation instruments to strengthen institutional and commercial ties across key sectors.

1. Migration and mobility partnership: India and Switzerland signed an MoU to facilitate migration, address irregular migration and promote educational and professional mobility. It provides for multiple-entry visas valid for up to five years, stays of up to six months per visit and renewable one-year student permits.
2. Exchange of young professionals: The agreement facilitates temporary employment and professional exchanges, allowing each country to exchange 300 young professionals annually, with the option to increase the number to 500.
3. Transport infrastructure cooperation: The MoU promotes collaboration in transport technologies and sustainable infrastructure, covering electric vehicles, ropeways, tunnels, circular economy solutions and mobility systems.
4. Scientific research cooperation: India’s Department of Science and Technology and the Swiss National Science Foundation signed a Letter of Intent to strengthen research partnerships in healthcare, clean energy, space and other mutually agreed areas.
5. Startup development and technology transfer: An implementation arrangement between India’s Department of Science and Technology and the Zurich University of Applied Sciences supports the AIT India programme through startup training, bilateral exchanges, joint workshops and networking opportunities.