Switzerland Pivots to India as "Huge Priority" Amid 39% US Tariffs: Strategic Economic Partnership Evolves

Martin Saladin, Head of Promotion Activities Directorate at State Secretariat for Economic Affairs

Martin Saladin, Head of the Promotion Activities Directorate at the State Secretariat for Economic Affairs, SECO, from the Swiss government, indicated on Wednesday that Switzerland is pivoting towards India as a key strategic economic partner amidst the challenging US trade tariffs.

Addressing the US tariffs situation, Saladin remarked, "This is a concern. Obviously, Switzerland has also very high tariffs at the moment with 39 per cent. That's certainly a challenge. At the same time, it's an opportunity. Because what we are trying, or what we are doing, and have been doing over the years, is diversifying markets. India is a huge priority in our diversification strategy."

It's worth noting that Switzerland currently faces one of the highest duty rates imposed by US President Donald Trump's administration, with a substantial 39% tariff implemented in August. This followed unsuccessful negotiations when a Swiss delegation led by President Karin Keller-Sutter failed to secure a favorable trade deal during meetings with Trump in Washington, DC.

Discussing investment priorities, Saladin emphasized that Switzerland is actively pursuing enhanced collaboration in several sectors including railways, ropeways, and tunnelling technology.

"We have just entered into force our free trade agreement between EFTA and India, with Switzerland, as part of EFTA, being very interested. We have an objective for investments under that TEPA agreement, and we count on India to facilitate. India counts on Switzerland to promote investments, so this visit here of these two or three days is inserting itself very much into that agenda," he further elaborated.

The India-European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA), which was signed on 10 March 2024 in New Delhi, became operational on 1 October 2025, representing a significant milestone in India's external trade policy development.

This landmark agreement marks India's first Free Trade Agreement with four developed European nations - Switzerland, Norway, Iceland, and Liechtenstein - and stands as one of the most comprehensive in both scale and intention. It represents a strategic alignment between India's Atmanirbhar Bharat vision and EFTA's pursuit of resilient, diversified partnerships.

The comprehensive agreement encompasses 14 chapters, covering essential areas such as market access for goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, investment promotion, services, intellectual property rights, trade and sustainable development, along with various legal and horizontal provisions.

At its foundation, the agreement aims to facilitate USD 100 billion in investments and generate one million direct jobs in India over the next fifteen years, positioning it as one of the most forward-looking trade partnerships in the country's economic history.

During his Switzerland visit in June, Union Minister of Commerce and Industry Piyush Goyal extended an invitation to Swiss companies to participate in India's ambitious USD 30 trillion economy initiative targeted for 2047.