The policy repo rate, which was cut to 5.25% in December 2025, had been kept on hold at the next four MPC meetings. In the easing cycle, the MPC had cut the rate by 125 basis points in phases, from 6.50% to 5.25%, before increasing it on October 7. The previous, longer hold lasted 11 meetings, with the rate kept at 6.50% from April 2023 to December 2024.

The MPC raised the central bank’s real GDP growth projection for the current financial year 2026-27 by 40 basis points to 7.1 percent, citing the resilience of domestic economic activity despite global headwinds.

Parmelin said the agreement’s investment focus brought together the complementary strengths of the two economies. Switzerland offered companies with global reach, specialised technologies, strong innovation capabilities and a long-term investment approach, while India combined scale with a dynamic economy, a highly skilled workforce and an increasingly important role in global value chains.

The agreement covers India and the four EFTA members—Switzerland, Norway, Iceland and Liechtenstein.

Switzerland will host the next AI Summit in Geneva in June 2027. Parmelin described India as a key partner and said Switzerland was committed to ensuring continuity between the two summits and looked forward to India’s participation.