Good Regulatory Framework Important In India To Attract Investments: Swiss Diplomat

 

Bern : Switzerland's State Secretary for Economic Affairs Helene Budliger Artieda has said a good regulatory framework and cut in red tape in India is important to attract Swiss investments. She said businesses here have raised concerns about bureaucratic hurdles. India and the four European nation bloc EFTA has signed a free trade agreement on March 10, 2024, which is expected to come into force from October 1.

 

Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products such as Swiss watches, chocolates, and cut and polished diamonds at lower or zero duties. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland. She said for USD 100 billion investments, "we need to have the best framework conditions and this was part of the business roundtable meeting in the presence of Minister Goyal".

 

"That will be important that red tape will be cut as much as possible. Even in Switzerland, companies always complain that there is too much red tape. It will be very important that India creates a good framework for Swiss investments to come in," she told reporters here after meeting Goyal on June 10. The Indian minister was here on a two-day official visit to meet businesses to attract investments into India. On the issue of Swiss government suspending the most favoured nation (MFN) status clause in the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland, Artieda said there has been some misunderstanding on this. "But it really has no connection whatsoever... I think it's important to know that both India and Switzerland share a double taxation treaty and that treaty is valid and that means there will not be any issue," she said. In a statement in December 2024, the Swiss government announced the suspension of the MFN clause in the DTAA between India and Switzerland, potentially impacting Swiss investments in India and leading to higher taxes on Indian companies operating in the European nation.

 

She also said implementation of the trade agreement will help increase exports of Swiss watches and chocolates in India. Swiss companies will have the advantage of preferred access to markets in India for both watches and chocolates due to this pact. Further she added that Switzerland is confident of achieving the USD 100 billion investment commitment in 15 years in India.

 

"I am very confident we will achieve that," she said. India-EFTA two-way trade was USD 18.65 billion in 2022-23 (of this, USD 17.14 billion with Switzerland) compared to USD 27.23 billion in 2021-22. The trade deficit was USD 14.8 billion in the last fiscal year. In 2024-25, India's imports from EFTA bloc increased to USD 22.5 billion from USD 22 billion in 2023-24. Exports stood at USD 1.96 billion in the last fiscal year, up from USD 1.94 billion in 2023-24. Switzerland is the largest trading partner of India in the bloc, followed by Norway. EFTA countries are not part of the European Union (EU). It is an inter-governmental organisation for the promotion and intensification of free trade. It was founded as an alternative for states that did not wish to join the European community.

 

India is negotiating a comprehensive free trade agreement separately with the EU -- the 27-nation bloc. India has received about USD 10.83 billion in foreign direct investments (FDI) from Switzerland between April 2000 and March 2025. It is the 12th largest investor in India. The FDI inflow was USD 931.88 million from Norway, USD 29.41 million from Iceland and USD 105.93 million from Liechtenstein during the period.