# 2 / 2024

Free trade agreement with India: a milestone for Swiss foreign trade

Bilateral trade between Switzerland and India

In view of India's size and economic strength, bilateral trade is currently still below average.

Potential in trade with India not yet fully utilized

  • In a global comparison, India is currently still a relatively small destination for Swiss goods exports (global share of 0.7 per cent in 2022). Our most important export markets are the European domestic market, followed by the USA and China.
  • However, economic growth in India is expected to increase demand for Swiss products and services in the future.

Subdued growth trend in bilateral trade in goods with India to date

  • Although at a relatively low level, the bilateral trade volume (excluding gold) between India and Switzerland has grown continuously over the last twenty years. In recent years, however, this growth has mainly been in favor of Indian goods imports into Switzerland.

Swiss exports and imports with India still significantly lower than with China

  • In 2022, gold accounted for 87 per cent of Swiss exports to India. Trade in gold is volatile, as it is heavily dependent on the global economic situation. This peculiarity distorts the interpretation of foreign trade figures.
  • Switzerland's most important exports to India in 2022 were machinery (21.9 per cent), pharmaceutical products (14.6 per cent), precision instruments (12 per cent) and chemical products (11.1 per cent).
  • The most important imports from India in 2022 were chemical products (32.9 percent), clothing (11.5 percent), precious metals and gemstones (11.1 percent) and aluminum (8.8 percent).
  • India and China currently have roughly the same population. Nevertheless, the volume of trade (imports + exports) between Switzerland and China currently exceeds that with India by a factor of more than eight (China: CHF 36.29 billion, trading partner #5 / India: CHF 4.28 billion, trading partner #20, 2022).

Source: SECO