India-Switzerland relations will mark 77 years in 2025. The two countries share cordial relations in a wide range of sectors. This blog explores the potential opportunities in developing close collaborations between the two countries in emerging sectors.
India-Switzerland relations started with the signing of the Treaty of Friendship in 1948, despite differences in cultural, geographical and regional political contexts. The relations between the two countries have expanded beyond state-level visits to include, most recently, mutual investment and trade. Trade between the two countries has grown up to USD 9.95 billion with opportunities in emerging sectors. Therefore, this blog aims to propose a roadmap for the Swiss companies and investors to expand their local presence in the Indian market through the sunrise sectors.
Investments in Improving Renewable Energy Production and Infrastructure
The renewable energy sector in India is supporting the country’s transition to non-fossil fuel energy. India has unveiled a series of renewable energy policies and programmes like the National Electricity Plan (NEP), Offshore Wind Energy and National Green Hydrogen Mission to increase capacity and investments in the renewable energy sector. India is expected to see a surge in energy demand across its economy by 2030, with the demand for energy capacity rising up to 370 gigawatts (GW). Despite limited renewable energy generation capacity, investors are deploying capital in the sector given India’s long-run electricity demand growth, robust policies and favourable market forces, providing opportunities for investors in buying operational renewable (RE) distribution assets and explore stable investment options. The key example include Swiss impact assessment manager, responsAbility, investing up to USD 35 million in Indian renewable energy developer, AMPIN Energy Transition. Therefore, the potential areas of investment in India by the Swiss companies include improving renewable energy developers and grid capacity systems. Investments in these sectors will not only reduce India’s energy imports, but also improve its energy infrastructure.
Boosting Mutual Textile Production Capabilities and Market Access
The textile sector in India is considered as a strong production base due to its capacity. In terms of spindle capacity, India stands second to China and the country’s textile industry has the potential to grow to USD 350 million, adding 3.5 crore jobs by 2030. The availability of raw materials like wool, jute, cotton and silk in India along with the solid reputation of Swiss companies in providing higher quality products are considered complementary in enhancing trade and investment relations. The collaboration will offer Swiss companies the potential to increase investment in the textile sector and increase exports using India’s existing supply chains.
Electronic Production Expansion Through Trade
Today, India is considered one of the fastest-growing economies and remains at the forefront of developing its digital economy and technological revolution. The country’s digital economy contributes to 11.74% of the national income with opportunities for transforming itself into a hub for innovation and startups. The technological capabilities provide an opportune moment for the Swiss technology companies and industrial set-ups to drive investments in the Indian digital market. The export capacity of the Swiss technology industry grew by 60% between 2020-2023 with potential market opportunities in increasing its exports of high-end technological products like electrical materials, sensors, valves and battery components to India. The export and investment avenues to India from Switzerland in the technological sector are likely to rise with the adoption of the Trade and Economic Partnership Agreement (TEPA) between India and European Free Trade Association (EFTA) member nations, comprising Switzerland, Liechtenstein, Iceland and Norway. Therefore, the trade relations will aid in securing a sales market with a promise of expansion, development and generating employment opportunities.
Strengthening Bilateral Ties for Mutual Investments
Relations between India and Switzerland will enable Swiss investors to develop and establish a market presence in the country, given the growth potential in sectors such as electronics, renewable energy and textiles.The conditions for a steady flow of mutual investments will not only enhance the brand presence of Swiss companies in India. It will also create conditions for a business-friendly environment and strengthen bilateral ties.
