Commerce Minister Piyush Goyal's recent visit to Switzerland included a meeting with Frederic Leuba, Co-Owner of Cabeltec SA, a Swiss firm specializing in cable machinery. The discussions centered on potential business opportunities for Cabeltec SA in India, particularly within the cable manufacturing sector. This meeting underscores the growing trade and investment ties between India and Switzerland, further strengthened by the recently approved trade deal between the two nations.
Cabeltec SA, founded in 1977, brings decades of expertise in the cable machine industry. The company advises cable manufacturers on equipment selection, considering their specific needs and budget constraints. Cabeltec SA offers technical advice, identifies manufacturing trends, and provides cable factory concepts for various types of cables, including power, telecommunications, and transmission cables using copper, aluminum, or fiber optics. The company also assists with technical specifications, negotiations with manufacturers, and logistical support for commissioning equipment and supplying spare parts.
Following the meeting with Minister Goyal, Frederic Leuba expressed Cabeltec SA's interest in establishing a cable factory or office in India. However, he also noted potential challenges related to transferring specific wire technology expertise. Despite these challenges, Cabeltec SA views the Indian market as a promising opportunity for expansion.
Minister Goyal's visit to Switzerland is part of a broader effort to enhance trade and investment relations between the two countries. Discussions also revolved around expanding India's presence in the cable industry and promoting collaborations in pharmaceuticals, life sciences, and precision engineering. These efforts align with the recent trade agreement between India and the European Free Trade Association (EFTA), of which Switzerland is a member. The agreement, signed in March 2024 after 16 years of negotiations, aims to reduce tariffs and facilitate trade between India and EFTA countries.
The India-EFTA Trade and Economic Partnership Agreement (TEPA) marks a significant milestone as the first comprehensive agreement concluded by India with European countries. The Swiss parliament has already approved the agreement, with nearly 95% of Swiss exports to India expected to benefit from customs relief. This deal is poised to give Swiss businesses a competitive advantage over companies from the EU, the US, and the UK, as these regions have yet to finalize similar trade agreements with India.
Bilateral trade between India and Switzerland has been robust, with a total trade of USD 21.03 billion in 2023. Switzerland has been a key trading partner for India, ranking as its 20th largest globally. The trade balance has generally favored Switzerland, largely due to India's significant imports of gold bullion from the country, a major gold refining center. In 2022, Swiss exports to India amounted to CHF 14.3 billion, comprising mainly precious metals, machinery, pharmaceuticals, and chemicals, while imports from India totaled CHF 2.7 billion, including chemicals, textiles, precious metals, and agricultural products.
The strengthening of economic ties between India and Switzerland is also evident in the increasing Swiss direct investment in India, which totaled CHF 7.3 billion at the end of 2022. To further facilitate investments from EFTA countries, an EFTA Desk has been established in New Delhi. Overall, the meeting between Cabeltec SA and Minister Goyal reflects the positive trajectory of Indo-Swiss economic relations, driven by a shared commitment to expanding trade, investment, and technological collaboration.
