India, Switzerland to strengthen ties in defence, nuclear energy sectors

Why in the News

India-Switzerland ties have moved beyond the India-European Free Trade Association (EFTA) trade pact to a wider partnership covering people mobility, defence and nuclear energy. During the Swiss President’s visit to New Delhi, the two countries signed agreements on migration and mobility, young professionals, and transport and infrastructure.

What is the India-EFTA TEPA, and why does it frame the visit?

1. What it is: The Trade and Economic Partnership Agreement (TEPA) is one trade deal linking India with all four EFTA States: Iceland, Liechtenstein, Norway and Switzerland.
2. First of its kind: It is India’s first free trade agreement (FTA) with any economic bloc in Europe. It came into force in October 2025.
3. Investment and jobs goals: TEPA aims to attract $100 billion of investment and create one million direct jobs in India.
4. Gains for both sides: India gains capital, technology transfers and market access for high-value goods. Switzerland gains a large, fast-growing partner when global trade is unpredictable.
5. The takeaway: The visit, on TEPA’s first anniversary, aims to turn a trade deal into a wider partnership.

What did the two countries sign?

1. Migration and mobility pact: The Migration and Mobility Partnership Agreement sets mobility rules on equal treatment principles. It also targets irregular migration, exploitation and trafficking under national laws.
2. Longer visas: It provides multiple-entry visas valid for up to 5 years, with stays of up to 6 months on each visit.
3. Students and researchers: Indian students get renewable one-year permits, widening openings for Indian students, researchers and youth.
4. Young professionals exchange: The Young Professionals Agreement allows 300 persons a year from each country to work in the other, a number that may rise to 500.
5. Transport and infrastructure: A third agreement covers transport and infrastructure. India invited Swiss firms to invest and join design and manufacturing. Eg. The Varanasi ropeway.

What else is on the bilateral agenda?

1. Defence and nuclear energy: The two sides found new openings in military exchanges and defence production, and agreed to deepen collaboration in nuclear energy.
2. Market access for Indian exports: India says decisions were taken to widen access for its agriculture, pharmaceuticals, textiles and engineering goods in Switzerland.
3. Swiss investment sought: India wants new Swiss investment in biotech, life sciences, banking, insurance, food processing and sustainability.
4. Swiss asks: Switzerland hopes to conclude an investment protection agreement soon, and wants results in talks on intellectual property (IP) protection.
5. Research and summits: Joint research in health, clean energy and space will start soon. The India-EFTA Prosperity Summit this week aims to turn TEPA into concrete outcomes.

Challenges

1. No investment treaty: Swiss investors lack treaty protection in India. Eg. India ended its older bilateral investment treaties in 2017.
2. Patent differences: Swiss drug makers want stronger patents, which clash with India’s curbs on evergreening (extending patents through minor changes). Eg. Section 3(d), Patents Act, 1970.
3. Untested investment pledge: TEPA’s investment goal depends on decisions by private EFTA firms, so a shortfall is hard to remedy.
4. Small exchange quotas: The young professionals quota is small against India’s large pool of graduates.

Way Forward

1. Investment agreement: India and Switzerland should conclude an investment protection agreement that balances investor safeguards with regulatory space.
2. IP working group: Both sides should set up a TEPA working group to settle IP issues without diluting Section 3(d).
3. Mobility data: The Ministry of External Affairs should publish yearly data on visas and exchanges used.
4. Defence co-production: India should link Swiss precision engineering firms to Indian defence manufacturing.

Conclusion

Switzerland and India are using their trade pact as a base for wider ties in mobility, defence and energy. Whether pending investment and intellectual property issues are settled will decide if TEPA’s investment promise is actually met.

Key numbers

1. Young professionals verification: 30 to 90 days to verify nationality or residency status.
2. TEPA target horizon: investment and jobs goals set over 15 years.

Back2Basics: European Free Trade Association (EFTA)

1. Formation: EFTA was set up in 1960 by the Stockholm Convention, as a free trade grouping outside the European Economic Community.
2. Headquarters: Geneva, Switzerland.
3. Not a customs union: Each EFTA member sets its own external tariffs, and none is a member of the European Union (EU).
4. Link to the EU market: Iceland, Liechtenstein and Norway join the EU single market through the European Economic Area (EEA). Switzerland relies on bilateral agreements instead.

Matching Previous Year Question

“[2026] The Chancellor of Germany visited India in January 2026. Which of the following is/are NOT correct in terms of outcomes? 1. MoU between All India Institute of Ayurveda and University of Hamburg 2. MoU on Youth Hockey Development between Hockey India and German Hockey Federation 3. Establishment of a bilateral dialogue mechanism on the Indo-Pacific 4. Opening of an Honorary Consul of Germany in Lucknow (a) 2 and 3 (b) 1 and 4 (c) 3 and 4 (d) 1 only ANSWER: B”