Swiss Exports To India Decline By 25%

The Swiss exports to India have further declined by 25% following a downturn in the Indian economy and fluctuating rupee value.

“After having decreased 10% in 2012 and 24% in 2013, Swiss exports to India lost a further 25% in the first half of 2014. This is a considerable setback…. A thriving Indian economy with robust growth and a strong and stable rupee is therefore very much in the interest of Swiss exporters and investors into India”, said Dr Linus von Castelmur, Ambassador of Switzerland to India at an event organized by industry body ASSOCHAM.

Additionally, he said that because of a change in the leadership, a positive change is expected in the current trend, which is partly visible as the Sensex has risen while the rupee has appreciated. “I am sure that this is observed with a certain relief by Swiss exporters who have had a rather rough time in the last two to three years considering the double whammy of a strong Swiss franc and a weak Indian rupee, ” added Dr Linus von.

Commenting on the expectations of a strong economic growth of India, Dr Linus noted that the fact the BJP emerged as the single largest party in the general elections was an indication of a stable government capable of implementing strong policy framework that would result in India unleashing its huge potential. “Particularly in the business world there a clear expectation that the new government will support and not hamper the unique entrepreneurial spirit of Indian business men and women”, said Ambassador of Switzerland.

It should be noted that India has been negotiating Trade and Economic Partnership Agreement with Switzerland and other European Free Trade Association states Iceland, Liechtenstein and Norway for the past seven years to strengthen the export trade between both India and Switzerland.

“Unfortunately and despite the determination on both sides to conclude before the elections, this did not materialize. I can assure you that progress was made and the gap could be narrowed substantially in various areas, but it proved too optimistic to cross finishing line already. It will be important to resume the negotiations as quickly as possible now that the new Indian government has taken over with the principle that what was agreed is agreed”, added Dr Linus .

Interestingly, since the new government in power, both the Joint Economic Commission and the Financial Dialogue are scheduled to happen in Berne in October and November respectively and the Political Dialogue is also expected to happen in Delhi in November. “I am confident that the intensification of interaction between our two governments and authorities will soon spur our economic relations and translate into more trade and investment on both sides”, said Ambassador of Switzerland.

Currently, India mainly exports textiles and garments, organic chemicals, precious stones and jewellery, dyestuffs, machinery and parts, leather products, shoes and shoe uppers, cotton, plastics, coffee, tea and hand-knotted carpets to Switzerland. On the other hand, India imports from the country includes machinery and equipment, precision instruments, pharmaceutical products dyes nd chemicals, fertilizers and watches among others.