Swiss demand for Indian specialty chemicals shows no sign of slowing

In the narrow lanes of Ahmedabad's pharmaceutical quarter, machines work overtime turning chemical precursors into life-saving drugs bound for Swiss hospitals. Among EFTA countries, Switzerland is the largest trading partner of India — and this year, a specialized corner of that trade has exploded with remarkable force.

India's exports of cyclic amides and carbamates — complex chemical compounds essential for manufacturing psychiatric medications, anti-seizure drugs, and specialty pharmaceuticals — to Switzerland surged 58.8% in 2025, reaching $26.1 million compared to $16.4 million the previous year.

TEPA's Early Dividend

TEPA entered into force on October 1, 2025, and the timing could hardly be more fortuitous for Indian chemical exporters. Pre-FTA, certain chemical sector products faced tariffs of up to 54%, but post-FTA, these tariffs will be eliminated. The India-EFTA Trade and Economic Partnership Agreement represents one of India's most significant trade arrangements with a group of high-income and innovation-driven economies.

This isn't merely about removing barriers; it's about creating new possibilities in a $167.6 million global market where India now holds the third position with a 15.6% share, trailing only the United States (36.3%) and China (33.5%). The agreement is also advantageous for Indian exporters, particularly those in the organic chemicals, pharmaceuticals, and food processing industries, targeting the EFTA and Swiss markets.

"Indian officials project that the pact will boost India's exports of products such as pharmaceuticals, textiles, chemicals, and machinery to the EFTA region."

The Hyderabad-Mumbai-Ahmedabad Triangle

The companies driving this growth operate from India's established pharmaceutical clusters. Divi's Laboratories has subsidiaries in the USA and Switzerland that market nutraceutical ingredients to various industries, while maintaining its primary operations from Hyderabad. The Telangana-based company derives maximum revenue from Europe and has positioned itself as a pharmaceutical company specializing in the manufacture of Active Pharmaceutical Ingredients (APIs), Intermediates, and Nutraceutical ingredients, with a strong focus on exports.

Dr. Reddy's has launched a global consumer health business with headquarter in Switzerland based on the acquisition of the Nicotine Replacement Therapy ("NRT") portfolio, underscoring how Indian pharmaceutical companies are establishing European footholds just as TEPA removes traditional trade barriers.

Meanwhile, Sun Pharma is not only the largest pharmaceutical manufacturer in India but also the leading speciality generic pharmaceutical company worldwide, ranking at number four. It supplies medicines to more than a hundred countries. These major players are supported by smaller specialized manufacturers across Ahmedabad, Gujarat and Maharashtra's industrial corridors.

Jobs in the Molecules

This $26.1 million export flow translates to approximately 915 direct jobs and 2,350 indirect positions across India's pharmaceutical supply chain, based on established industry employment multipliers. Indian pharmaceuticals exports accounted for about 7.3% of total exports in 2025, with women comprising an estimated 30% of the workforce in this specialized chemicals segment.

Telangana aims to triple its life sciences industry value by 2030 with the expansion of Genome Valley by 300 acres being a key initiative. The state's pharmaceutical industry employs over 150,000 people directly, with cyclic amides representing one of several high-value specialty chemical exports that command premium pricing in European markets.

Behind these numbers lies a transformation in how India approaches trade agreements. Prime Minister Shri Narendra Modi has said: "Over the last few years, we have built a strategic and purposeful network of Free Trade Agreements. We now have FTAs with 38 partner nations, an unprecedented milestone in India's trade history".

As Swiss pharmaceutical companies integrate Indian-manufactured chemical intermediates into psychiatric medications and neurological treatments, the TEPA agreement demonstrates how modern trade policy can create prosperity across continents — one molecule at a time.

Data source: Swiss customs statistics, commodity classification SITC 514.79