India and Switzerland sign five pacts, including a five-year visa and mobility deal
A year into the EFTA trade pact, can visas and job exchanges help turn a $100 billion investment pledge into reality?
Published 6 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
Swiss President Guy Parmelin held talks with Prime Minister Narendra Modi at Hyderabad House in New Delhi on 5 October 2026, during his first State visit to India. The two sides signed five documents: a Memorandum of Understanding (MoU) on a Migration and Mobility Partnership; an Agreement on the Exchange of Young Professionals; an MoU between Switzerland's Federal Department of Economic Affairs, Education and Research and India's Ministry of Road Transport and Highways on transport technologies, mobility systems and infrastructure, covering areas such as electric vehicles, ropeways and tunnels; a Letter of Intent between India's Department of Science and Technology (DST) and the Swiss National Science Foundation on research cooperation; and an Implementation Arrangement between DST and the Zurich University of Applied Sciences for an Indo-Swiss Academia-Industry Training programme for early-stage start-ups.
Under the mobility MoU, multiple-entry visas can be issued for up to five years, with stays of up to six months on each visit, and students can get renewable one-year permits. The young professionals agreement lets 300 persons a year from each country take up temporary employment in the other, a number that may rise to 500. Modi said the two countries would expand cooperation in defence manufacturing, military exchanges and nuclear energy. He said that "be it Ukraine or West Asia, India has consistently supported every meaningful effort towards peace", and that both sides agreed reforms in global institutions were essential. Parmelin had visited India earlier in the year, on 19 and 20 February 2026, for the AI Impact Summit.
The visit came days after the first anniversary of the India-EFTA Trade and Economic Partnership Agreement (TEPA), in force since 1 October 2025. The European Free Trade Association (EFTA) has four members: Switzerland, Norway, Iceland and Liechtenstein. TEPA, signed in New Delhi on 10 March 2024, carries a commitment to raise investment in India by USD 50 billion within 10 years and another USD 50 billion in the next five, and to create one million direct jobs; the government describes it as the first binding pledge of its kind in any Indian free trade agreement. Modi said it would bring "100 billion dollars investment and 10 lakh direct jobs in India in the next 15 years". Trade is lopsided: in 2024-25 bilateral trade was USD 26.84 billion, with Indian exports of USD 1.67 billion and imports of USD 25.17 billion, much of it gold. The Hindu reports that Switzerland sought assurances on investment protection and intellectual property to encourage more capital flows.
Prelims facts
- Swiss President Guy Parmelin made his first State visit to India on 5 October 2026; five documents were signed, including a Migration and Mobility Partnership and a Young Professionals agreement.
- Mobility terms: multiple-entry visas for up to five years with stays of up to six months per visit, renewable one-year student permits, and 300 young professionals a year each way, which may rise to 500.
- The India-EFTA TEPA was signed on 10 March 2024 and entered into force on 1 October 2025; EFTA's members are Switzerland, Norway, Iceland and Liechtenstein.
- TEPA commits EFTA to raise investment in India by USD 50 billion in 10 years and another USD 50 billion in the next five, with one million direct jobs.
- India-Switzerland trade in 2024-25 was USD 26.84 billion, with Indian exports of only USD 1.67 billion; the two countries signed a Treaty of Friendship on 14 August 1948.
Quick recall
- When did Swiss President Guy Parmelin make his first State visit to India?
- 5 October 2026; talks were held at Hyderabad House, New Delhi.
- How long can multiple-entry visas run under the India-Switzerland mobility MoU?
- Up to five years, with stays of up to six months on each visit.
- How many young professionals can each side send under the new agreement?
- 300 a year from each country, which may increase to 500.
- Who are EFTA's members?
- Switzerland, Norway, Iceland and Liechtenstein.
- When was the India-EFTA TEPA signed and when did it enter into force?
- Signed 10 March 2024 in New Delhi; in force from 1 October 2025.
- What is TEPA's investment commitment?
- USD 50 billion within 10 years and USD 50 billion more in the next five, with one million direct jobs.
- What was India-Switzerland trade in 2024-25?
- USD 26.84 billion: Indian exports USD 1.67 billion, imports USD 25.17 billion.
- When did India and Switzerland sign their Treaty of Friendship?
- 14 August 1948.
Prelims practice question
With reference to the India-EFTA Trade and Economic Partnership Agreement (TEPA), consider the following statements:
1. It entered into force on 1 October 2025.
2. All members of the European Free Trade Association are also members of the European Union.
3. It includes a commitment to raise investment in India by USD 100 billion over 15 years.
Which of the statements given above are correct?
- 1 and 2 only
- 2 and 3 only
- 1 and 3 only
- 1, 2 and 3
Show answer
Answer: (c) 1 and 3 only. Statement 1 is correct. Statement 2 is wrong: none of EFTA's four members (Switzerland, Norway, Iceland, Liechtenstein) is in the European Union. Statement 3 is correct: USD 50 billion within 10 years and a further USD 50 billion in the next five years.
Use this in UPSC Mains: previous-year questions
Recurring theme: India's trade and investment agreements with developed economies
- How to use this
Cite TEPA and the India-Switzerland agreements as India's response to protectionism: bilateral deals that combine market access, binding investment and labour mobility.
- The India-EFTA TEPA, in force since 1 October 2025, commits USD 50 billion of investment in 10 years and another USD 50 billion in the next five.
- TEPA's pledge of one million direct jobs is described as the first binding commitment of its kind in an Indian FTA.
- The October 2026 India-Switzerland mobility pact allows five-year multiple-entry visas and 300 young professionals a year each way, rising to 500.
BTIA is the older name for India's trade negotiations with the European Union; EFTA countries, though European, are outside the EU and concluded a separate pact, TEPA.
Mains practice question
India's partnerships with smaller advanced economies now combine trade, investment and the mobility of people. Discuss with reference to the India-EFTA TEPA and the recent India-Switzerland agreements. (250 words)
Model answer
During Swiss President Guy Parmelin's State visit on 5 October 2026, India and Switzerland signed five documents, led by a Migration and Mobility Partnership, just after the first anniversary of the India-EFTA Trade and Economic Partnership Agreement (TEPA).
Trade
- TEPA, signed on 10 March 2024 and in force from 1 October 2025, is India's first FTA with EFTA (Switzerland, Norway, Iceland, Liechtenstein).
- India-Switzerland trade in 2024-25 was USD 26.84 billion, but Indian exports were only USD 1.67 billion; lower tariffs give Indian goods a chance to narrow the gap.
Investment
- TEPA has a binding pledge: USD 50 billion in 10 years and USD 50 billion more in the next five, with one million direct jobs.
- Switzerland is reported to have sought assurances on investment protection and intellectual property, showing that the pledge depends on India's investment climate.
Mobility
- Multiple-entry visas for up to five years, stays of up to six months per visit, renewable one-year student permits.
- 300 young professionals a year each way, which may rise to 500.
- Skills and talent are what smaller ageing economies need and India can supply.
Technology and strategy
- Cooperation on transport infrastructure (ropeways, tunnels, electric vehicles), research (DST and the Swiss National Science Foundation) and start-up training.
- Plans to deepen defence manufacturing, military exchanges and nuclear energy cooperation.
Challenges
- Monitoring whether investment targets are met.
- Intellectual property concerns, especially in pharmaceuticals.
- A trade deficit driven largely by gold imports.
By linking market access, capital and people, the Swiss partnership offers a template for India's ties with other advanced economies.
The basics
Why this matters
India's trade deals used to be about tariffs. The newer ones also carry investment pledges and rules for moving people. The India-Switzerland agreements of 5 October 2026 show all three strands together: market access through TEPA, a binding investment target, and visas and job exchanges for students and young professionals. Understanding the pieces helps in GS2 answers on bilateral relations and GS3 answers on investment.
Who is EFTA
Switzerland negotiated with India as part of the European Free Trade Association, a small group of rich European countries outside the European Union.
- 1SwitzerlandOutside both the EU and the European Economic Area; linked to the EU by bilateral agreements
- 2NorwayIn the European Economic Area, outside the EU
- 3IcelandIn the European Economic Area, outside the EU
- 4LiechtensteinIn the European Economic Area, outside the EU
What TEPA promises
The India-EFTA Trade and Economic Partnership Agreement is unusual because it puts a number on investment. EFTA countries commit to raise investment in India by USD 50 billion within 10 years and another USD 50 billion in the next five, with one million direct jobs. India in turn opened 82.7% of its tariff lines, covering 95.3% of EFTA's exports, while EFTA's offer covers 92.2% of tariff lines and 99.6% of India's exports.
A lopsided trade relationship
Moving people, not just goods
The new partnership adds rules for students and workers, part of a wider set of Migration and mobility agreements that India has signed with European countries. Multiple-entry visas of up to five years and 300 young professionals a year each way, which may rise to 500, give Indian talent legal routes into a high-wage economy.
- 14 Aug 1948Treaty of Friendship signed
- 10 Mar 2024India-EFTA TEPA signed in New Delhi
- 1 Oct 2025TEPA enters into force
- 19-20 Feb 2026President Parmelin attends the AI Impact Summit in India
- 5 Oct 2026First State visit by Parmelin; five documents signed
Why a Swiss President changes every year is explained in How Switzerland is governed.
Go deeper
In one line: On 5 October 2026 India and Switzerland signed five documents, including a five-year multiple-entry visa framework and a young professionals exchange, a year after the India-EFTA trade pact took effect.
Why it matters for UPSC
GS2 asks about bilateral agreements and groupings; GS3 about investment. TEPA's binding investment pledge is a new model in Indian trade policy, and mobility agreements are increasingly part of India's diplomacy.
The core idea
Switzerland is a member of the European Free Trade Association, which signed the India-EFTA Trade and Economic Partnership Agreement with India. TEPA lowers tariffs and pledges USD 100 billion of investment over 15 years. The new agreements add a people dimension through Migration and mobility agreements, plus cooperation on transport infrastructure, research and start-ups. Switzerland's President, a post that rotates every year, is explained in How Switzerland is governed.
Numbers and dates to remember
- 5 October 2026: first State visit by President Guy Parmelin.
- Visas: multiple entry up to 5 years, stays up to 6 months per visit; renewable 1-year student permits.
- Young professionals: 300 a year each way, may rise to 500.
- TEPA: signed 10 March 2024; in force 1 October 2025.
- Investment: USD 50 billion in 10 years plus USD 50 billion in the next 5; one million direct jobs.
- Trade 2024-25: USD 26.84 billion; Indian exports USD 1.67 billion.
- Treaty of Friendship: 14 August 1948.
Where to go next
- European Free Trade Association: the four-country bloc outside the EU.
- India-EFTA Trade and Economic Partnership Agreement: what TEPA covers and why its investment clause is new.
- Migration and mobility agreements: why visas and job exchanges now sit in trade diplomacy.
- How Switzerland is governed: why Switzerland has a new President every year.
Go deeper: can an investment pledge in a trade deal work?
The case for optimism: the India-EFTA Trade and Economic Partnership Agreement is the first Indian FTA with a binding commitment on investment and jobs, and Switzerland is already a significant investor, 12th among sources of FDI into India with about USD 10.87 billion from April 2000 to June 2025, according to the Indian Embassy in Bern. Lower tariffs and better access to a rich market can draw firms that want to manufacture in India.
The case for caution: governments do not make most investment decisions; companies do. Switzerland is reported to have sought assurances on investment protection and intellectual property, a reminder that investors watch India's bilateral investment treaty policy, tax disputes and patent law. Pharmaceutical patents are a long-running point of friction: in Novartis v. Union of India (2013) the Supreme Court upheld the refusal of a patent for the Swiss firm's cancer drug Glivec under Section 3(d) of the Patents Act, 1970.
On people, Migration and mobility agreements give legal routes for Indian students and young workers, and help partners with ageing populations. The numbers are modest, 300 young professionals a year rising at most to 500, and the partnership also commits both sides to combat irregular migration.
Strategically, the European Free Trade Association connects India to European economies outside the EU, and Switzerland's neutrality and role as host of many international organisations in Geneva make it a useful partner on multilateral reform, which both sides endorsed on 5 October. For aspirants, TEPA is the clearest Indian example of a trade agreement that tries to write investment outcomes into a treaty.
European Free Trade Association
The four-country bloc outside the EU that India signed TEPA with.
In one line: EFTA is a free trade organisation of four European countries that are not members of the European Union: Switzerland, Norway, Iceland and Liechtenstein.
Origins
EFTA was set up in 1960 by the Stockholm Convention as an alternative to the European Economic Community. Several founding members, including the United Kingdom, later left to join the European Communities, now the EU, leaving the present four.
How it works with the EU
Norway, Iceland and Liechtenstein are part of the European Economic Area, which gives them access to the EU's single market. Switzerland is not; it relates to the EU through a set of bilateral agreements. All four negotiate free trade agreements with other countries jointly as EFTA.
Why it is in the news
The India-EFTA TEPA completed one year in force on 1 October 2026, and Switzerland deepened its ties with India on 5 October 2026.
Where to go next
India-EFTA Trade and Economic Partnership Agreement
What TEPA covers and why its investment clause is new.
In one line: TEPA is India's free trade agreement with the four EFTA countries, signed on 10 March 2024 and in force from 1 October 2025.
What it contains
TEPA has 14 chapters, covering market access for goods, rules of origin, trade facilitation, services, intellectual property rights, sustainable development and investment promotion. EFTA's offer covers 92.2% of its tariff lines and 99.6% of India's exports; India's offer covers 82.7% of tariff lines and 95.3% of EFTA's exports.
The investment pledge
EFTA committed to raise investment in India by USD 50 billion within 10 years and another USD 50 billion in the next five, and to help create one million direct jobs. The government describes it as the first binding pledge of its kind in any Indian FTA.
Why it is in the news
Modi cited the pledge on 5 October 2026, saying it would bring USD 100 billion and 10 lakh direct jobs in 15 years.
Where to go next
Migration and mobility agreements
Why visas and job exchanges now sit in trade diplomacy.
In one line: Migration and mobility agreements set legal routes for students, workers and professionals between two countries, often paired with cooperation against irregular migration.
What they usually contain
Typical elements are easier visas for students and skilled workers, post-study work options, young professional schemes with annual quotas, and cooperation on returning people who stay illegally. India has signed agreements of this kind with several European countries.
The Swiss agreement
The India-Switzerland Migration and Mobility Partnership of 5 October 2026 aims to develop cooperation under equal treatment principles and to combat irregular migration. It allows multiple-entry visas for up to five years with stays of up to six months each, and renewable one-year student permits. A separate agreement allows 300 young professionals a year from each side, which may rise to 500.
Why it matters
India has a young workforce; many European economies are ageing and short of skills. Legal pathways benefit both and protect migrants.
Where to go next
How Switzerland is governed
Why Switzerland has a new President every year.
In one line: Switzerland is a federal state run by a seven-member Federal Council; its President is one of those seven and holds the post for one year.
The Federal Council
Executive power lies with the seven-member Federal Council, elected by the Federal Assembly (the Swiss Parliament). Each member heads a federal department, such as the Federal Department of Economic Affairs, Education and Research that signed the transport MoU with India.
The rotating presidency
The Federal Assembly elects one councillor as President of the Swiss Confederation for a one-year term. The President chairs Council meetings and represents the country, but is first among equals, not a head of government in the Indian sense. Guy Parmelin holds the post in 2026.
Direct democracy and neutrality
Swiss citizens vote on many laws through referendums, and the country follows a long tradition of neutrality. Geneva hosts many international organisations.
Where to go next
Take the 6 October 2026 quiz: 30 Prelims-style questions with answers