An old friendship renews itself through an ambitious pact

In the past eight months since arriving in Delhi for the AI Impact Summit, I find myself back in the city to commemorate the first anniversary of the Trade and Economic Partnership Agreement (TEPA) between the EFTA states and India. This accord, once a mere trade negotiation, has blossomed into a deepening relationship between two democracies and two economies. Today, I serve as a guest of the Republic of India, marking a significant milestone in this evolving partnership.

TEPA's impact is more than just a set of headline figures; it signifies tangible progress. Swiss firms are now bringing precision machinery, pharmaceuticals, MedTech, and specialty chemicals to the agreement, a move that promises to bolster Indian manufacturing rather than pose competition. While it is too early to assess the full effects, the trajectory is evident.

Initial conversations with Swiss businesses indicate they are in the early stages of planning for the $100 billion investment and job-creation goal embedded within TEPA. This is the first Indian trade agreement to link market access to a concrete investment target, a shift from tariff schedules alone.

The partnership extends beyond economic gains. A dedicated desk has been established to facilitate smooth and informed investment experiences for EFTA companies. This collaboration benefits both parties: India receives capital and technology, while Switzerland gains a significant, rapidly expanding trading partner at a time when global trade is more vulnerable than ever.

TEPA's inclusion of labor standards, environmental protections, and responsible business conduct distinguishes it from older trade agreements, reflecting shared commitments between India and the EFTA states.

Moreover, TEPA underscores a broader relationship between our nations. This includes scientific and research cooperation dating back decades, a steady flow of Indian students and professionals studying in Swiss universities and technical institutes, and growing numbers of Indian tourists visiting Switzerland's Alps. Switzerland's interest in India is equally reciprocal, with Swiss tourists drawn to India's rich culture and history.

This multifaceted relationship, built over years, forms the foundation for the trade relations we now enjoy.

As we approach 2028, when Switzerland and India will celebrate 80 years of their Treaty of Friendship, marked by "perpetual peace" and "unalterable friendship," the TEPA stands as a practical embodiment of this enduring bond. From scientific exchanges in one decade to student visas in another, now a trade agreement with a $100-billion ambition, these developments represent our commitment to mutual support and shared prosperity.

The TEPA, alongside the Migration and Mobility Partnership and the Young Professional Agreement, is our answer to a promise made nearly 80 years ago, a framework designed to deepen our friendship through mutual growth and prosperity.