Diplomatist Magazine Diplomatist January 2019 | Page 43

INSIDE EUROPE
Swiss investment infl ows of approximately USD 7.71 billion
into the Indian nation. On the other hand, about 100 Indian
companies have invested about USD 1.2 billion between
2012 and 2014 in Switzerland, “placing it among the top fi ve
European investment destinations and top-ten places globally
for Indian investors.”
India’s Trade with Switzerland (2010-2017)
Foreign Direct Investment Infl ow in India from
Switzerland
(Source: Directorate General of Foreign Trade, Government of India)
(Source: Reserve Bank of India)
Challenges and Opportunities
While Switzerland is the 5th largest trading partner
for India, recent trends in Indo-Swiss trade indicate some
attenuation in the trading intensity given the adverse currency
movements and the changing structure of the international
markets. From 2010-11 levels, the Indian exports to
Switzerland (mainly organic chemicals (28%), precious
stones and jewelry (11%), textiles and apparel (15.6%) etc.)
reduced from $689.79 million to $401.87 in 2016-17 - a
decline of nearly 41.7 percent. Similarly, the imports from
Switzerland to India (mainly pearls, precious stones, and
metal (92%), machinery, nuclear reactors, and boilers (1.9%)
etc.) have also decreased by 75 percent - from approx.
$24,802 million in 2010-11 to $5,971 million in 2016-17.
Indeed, the slowing rate of trade between the two is a trend
that policymakers should actively work towards remedying.
Even though some may argue that in terms of the balance
of trade, India is closing the gap with Switzerland by reducing
imports, yet one has to keep in mind the evidence that nations
who trade together are more likely to cooperate in shaping
the international world order. Moreover, lesser imports do
not necessarily mean higher economic benefi ts for a nation.
In absolute terms, the trade between the two nations has
increased from the 1948 levels, but the relative decline in
the past decade is a policy concern given the two nations’
strategic interests. India is Switzerland’s 4th largest export
destination following Germany, USA, and China. Similarly,
India is dependent on Switzerland for its imports, the latter
being India’s 5th largest import partner. Both countries are
mutually dependent on each other and the trade between
them can be considered “moderately high” comparing
their respective trade with other nations. The point being
that despite declining trade, the two nations are mutually
dependent and can enhance their levels of collaboration
through well-designed policy measures.
Extraordinary and Plenipotentiary Diplomatist • Vol 7 • Issue 1 • January 2019, Noida • 43