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The diplomatic ties between India and Switzerland have long paved the way for good relations. With more than seven decades of diplomatic engagement, India knows the worth of its relationship with Switzerland, which is a neutral country and not a part of the EU. Hence, it is the first entry point for India in Europe.
Illustration by The Geostrata
The opportunities to increase by Switzerland’s political non-alignment, the stability of its financial structures, and the geographical position of the country, India may amplify its political and economic influence and soft power as a driver to a perspective of the development of the relations between European states and multilateral cooperation with the EU.
NATURAL FRIENDSHIP - A HISTORY
Switzerland had friendly diplomatic relations with many countries and was one of the first countries to have diplomatic ties with India. The diplomatic relations could be observed in the signing of the Treaty of Friendship in 1948 between the two nations.
Before the economic liberalisation of the 1990s, Switzerland was one of the largest partners of India in terms of cooperation in technology, finances, infrastructure, etc.
An example is the Integral Coach Factory (ICF) in Chennai, which was established under an agreement between the Government of India and the Swiss Cars and Elevators Manufacturing Company in 1949 through technical collaboration and passing on of the technology in coach-building.
There are elaborate means of revising and discussing the course of bilateral trade and economic cooperation between the two countries, which function actively, such as the Joint Economic Commission, established in 1959 and the Bilateral Financial Dialogue, which began in 2012.
Today, Indian and Swiss relations are developed enough to give trust and become partners in many fields. Switzerland also imports organic chemicals, electrical machinery, and even gems, jewellery, and leather to assemble luxury items and goods that are superior to those in the world.
The bilateral trade for the FY 2021-22 was estimated to be $25 Billion, of which 100+ Indian Companies had a turnover of over CHF 3 Billion. Currently, India and Switzerland have a good economic and political relationship.
PROJECTING INFLUENCE ACROSS THE CONTINENT
India’s growing influence over the world and its ever-emerging geopolitical importance in Asia and the Indo-Pacific attract a lot of attention from countries across the globe. India recognises this and bolsters efforts to further ties with several key regional and global powers. The European Union is a region with a large consumer market and countries with strong political influence in multilateral platforms, providing India with a potential area to foster ties and increase their outreach, further assisting them in the regional and global realm of politics.
By leveraging Switzerland’s political neutrality and strong international presence, India can enhance its outreach by initiating dialogues and diplomatic forums with European countries organising them in Switzerland.
Switzerland’s status as a neutral country unlocks immense opportunities for India to propel its interests and policies in several multilateral forums and international organisations. India can strengthen its soft power by promoting cultural exchanges by utilising Switzerland’s location in central Europe and using Swiss institutions to foster people-to-people connections.
India can establish an agreement with Switzerland on cultural cooperation that would significantly bolster India’s soft power across Europe, counting on the fact that Switzerland is a signatory of the Schengen Agreement. Leveraging Switzerland’s political presence and strategic location, India can enhance its collaboration on climate change, sustainable development, and green energy with countries such as France and Germany.
India’s increasingly active role in such global issues, along with Switzerland’s location, can assist in organising dialogues and platforms to facilitate discourse and mitigate those issues.
Switzerland’s robust financial system and stable monetary apparatus are trusted worldwide. India can leverage this by facilitating financial transactions and infrastructural investments in Europe. Economic relations would set up a foothold for India and also encourage Switzerland to invest in India by generating confidence among Swiss businesses and investors, furthering economic relations between both nations.
India recently signed a Free Trade Agreement with the European Free Trade Association, which includes Iceland, Norway, Liechtenstein, and Switzerland. The free association would give over $100 billion of investments in India for the coming decade. India-EFTA Trade and Economic Partnership Agreement could serve as a model to negotiate favourable trade agreements with European countries.
BILATERAL RELATIONS FOR ACCESS TO EUROPE
Switzerland’s business-friendly environment and strategic location can assist India in entering the European market, expanding and forming its economic interests, bilateral partnerships with other countries. This could help mitigate the long-due India-EU Free Trade Agreement by bypassing the negotiations and dialogues and fostering individual bilateral trade relations with European countries.
Another area with potential for expansion is in science and technology, where India and Switzerland can utilise existing agreements such as the Science and Technology Agreement of 2003 and the India-Switzerland Science and Innovation Alliance signed in 2019 to collaborate on research and development projects in major sectors of the economy such as manufacturing, pharmaceuticals and infrastructure.
One of the first steps that India can take is to formalise bilateral agreements on trade, investment, cultural exchange, and technology with European countries by utilising Switzerland’s position as a neutral party in the negotiation rounds, which can provide a pathway for cooperation. India could also organise and host specific expos and forums for dialogue in Switzerland to attract investors and businesses across Europe, facilitating networking and business opportunities.
CONCLUSION
A symbiotic relationship is what India and Switzerland could achieve by assisting each other’s interests in their respective regions. Regular high-level meetings and dialogues between Indian and Swiss leaders would ensure continuous engagement. By strategically leveraging its relationship with Switzerland, India can create a gateway to Europe, enhancing and securing its economic interests and political influence.
BY RAVI RAWAT
TEAM THE GEOSTRATA
Good exploratory writing as regards to trade with Switzerland. It would be interesting to see, How Nestle can expand in India and in similar way How Indian conglomerates can expand into Swiss country.
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