Indo-Swiss trade and economic relationship.

Indo-Swiss bilateral relations date back to the time of India’s independence: India and Switzerland signed a treaty of friendship in 1948. It was the first such treaty that India signed with any country, laying the foundations for the two countries’ bilateral relations. Since the opening of the Indian economy, trade and economic relations have gradually gained in importance and have grown significantly over the past 10 years.

India’s imports from Switzerland amounted to $2.9 billion in 2012, while India exported goods and services worth $1.6 billion to Switzerland. From 2000 to 2013, Switzerland invested $2.3 billion in India, making it the 11th largest foreign investor here. According to the Swiss embassy in New Delhi, over 200 Swiss companies have a presence in India.

At the same time, Switzerland ranks among the top five European investment destinations for Indian investors, while many Indian companies have discovered Switzerland as a gateway to European markets.

From 2003 to 2012, the volume in trade between the two countries has more than tripled. India imports primarily precious stones, precious metals, jewellery, pharmaceuticals, machinery, precision instruments and watches from Switzerland. The main Indian exports to Switzerland include chemical products, textiles, precious stones and metals and jewellery.

Switzerland is also becoming increasingly popular as a holiday destination for Indians. Over the past five years, the numbers of Indian tourists staying in Switzerland have doubled. At the same time, approximately 50,000 Swiss tourists visit India annually.

Switzerland is a member of the European Free Trade Association (Efta), which is currently negotiating a free trade agreement (FTA) with India. So far, 13 rounds of negotiations have taken place since 2008. Efta is a free trade organisation of the four non EU-member states Switzerland, Liechtenstein, Norway and Iceland. Among the four states, Switzerland is by far India’s largest trading partner, with a bilateral trading volume of $4.5 billion in 2012.

The last round of talks was held in December, and the FTA was also discussed last month in the Swiss mountain resort of Davos, when minister of commerce and industry Anand Sharma and finance minister Palaniappan Chidambaram attended the World Economic Forum. The next round of negotiations will take place at the end of this month. The free trade agreement foresees import tariff reductions, cutbacks in bureaucracy and improvements in legal security. It would ameliorate market access and eliminate trade barriers for both sides. According to Efta sources, the negotiations are far advanced.

Source : mydigitalfc.com