We just celebrated the 75th anniversary of the Treaty of Friendship between India and Switzerland, and only a few days later, during the G20 Trade and Investment ministerial meeting in Jaipur, we witnessed India's historic landing on the south pole of the moon.
India, set to be the global growth locomotive for the years to come, has embarked on a journey of growth, weaving regional and bilateral trade relations on the basis of trade and economic partnership agreements.
India is seeking long-term foreign investments to support its development and growth ambitions, and foreign investors are looking at India as a leading market with an enormous potential to diversify their supply chains.
India and the European Free Trade Association, with Switzerland as lead negotiators, had launched negotiations on a Free Trade Agreement (FTA) 15 years ago in 2008.
But the dynamics to conclude a Trade and Economic Partnership Agreement (TEPA) only resumed this spring and have since gained pace.
Both governments keep facing the question of what is in it for their countries and for their people. We believe there is a lot on the table enabling the creation of a lasting mutual win-win situation.
Innovation: Switzerland has been ranked as the most innovative country for many consecutive years. India also strives to be a leading business-friendly and innovative nation. Its young population, with its many successful entrepreneurs and start-ups, desires to move up the value chain, competing with their peers around the world and has meanwhile also realized the value of the intellectual property (by now there are more national than international patents filings in India).
Switzerland being a small market always had to be innovative to stay competitive.
Early on, it saw the value of protecting intellectual property and technology know-how to justify the huge investments in R&D in the first place. It has a vested interest in scaling up its presence in promising and large markets like India by supplying its high-quality solutions in all relevant sectors, including healthcare.
Investments: The upside for Swiss investors in India appears obvious: Switzerland is one of the biggest foreign direct investors worldwide (ranked sixth). In China, where Switzerland has both a BIT (Bilateral Investment Treaty) and a Free Trade Agreement (FTA) in place, there is CHF 300 billion in FDI with more than 1,000 companies present, whereas, in India, Switzerland so far has CHF 10 billion in FDI and 323 companies present.
The potential to increase investments is immense. Foreign investors, though, require certainty and protection for long-term investments, which is why it is important for both countries to have a stable Bilateral Investment Treaty (BIT) in place again.
Manufacturing: India's "Make in India" aims at creating a manufacturing hub not only for domestic but also for export purposes.
Almost two-thirds of the Swiss companies are already present in India, many for decades and beyond, and already manufacture in, and export from, India.
Many more are waiting to join. The untapped potential lies in the large number of SMEs in the Swiss economy -- its backbone -- who require a stable trade and investment framework. For them, market entry starts with trading, for which tariff (and non-tariff) barriers are a critical factor.
Thus, Swiss machinery and tooling manufacturers, as well as Swiss retail brands -- including the widely sought Swiss watches -- seek low to no import tariffs and smooth processes even for local manufacturing purposes, where stringent local content rules may be preventive.
Skilling: "Skill India" aims at creating a skilled workforce providing meaningful employment for the rapidly growing young working population. Switzerland is known for its world-class vocational education training (VET), and Swiss companies in India have already successfully implemented such programs. Much more can be achieved with the presence of even more Swiss companies and jointly developed VET programs.
Mobility: Talent is both abundant and rare. Switzerland is in need of skilled talent, in particular, in the IT sector where more and more Swiss companies rely on Indian service providers.
In times of escalating concerns around immigration, it is important to note the difference and acknowledge the benefit of mobile talent which is sought after around the world.
India can not only contribute to Swiss companies but also to Switzerland on its digitalization journey.
We call on both governments to seize the historic momentum and take their 75 years of friendship to the next level, into a lasting partnership.
Philippe Reich and Satish Rao are Chairmen Swiss-Indian Chamber of Commerce (Switzerland and India)