Hereditary Prince Alois of Liechtenstein visited India from 25 to 28 October 2026 at the invitation of Prime Minister Narendra Modi. President Droupadi Murmu accorded him a ceremonial reception at Rashtrapati Bhavan, and he held bilateral talks with the Prime Minister at Hyderabad House in New Delhi. The first ever state visit from Liechtenstein coincided with the first anniversary of the India EFTA TEPA, which promises $100 billion in investment and 1 million jobs in India.
What Happened During Prince Alois Visit to India?
Hereditary Prince Alois, the Acting Head of State of Liechtenstein, undertook a State Visit to India from 25 to 28 October 2026. The Ministry of External Affairs said the visit took place at the invitation of Prime Minister Narendra Modi. Prince Alois was accompanied by his wife, Hereditary Princess Sophie, Deputy Prime Minister Sabine Monauni and a high level business delegation.
The Prince arrived in Mumbai on 25 October and was received by Maharashtra protocol officials. He then visited Vadodara in Gujarat to see the plant of Hilti Manufacturing India, a Liechtenstein construction tools company. The delegation reached New Delhi on 27 October for the main official programme.
On 27 October, President Droupadi Murmu and Prime Minister Modi received Prince Alois and Princess Sophie with military honours at a ceremonial reception at Rashtrapati Bhavan. The royal couple also laid a wreath at Rajghat, the memorial to Mahatma Gandhi, and signed the visitors book. President Murmu later hosted an official banquet in their honour.
The same day, Prime Minister Modi and Prince Alois held delegation level talks at Hyderabad House in New Delhi. The talks covered trade and investment, science and technology, innovation, skill development and people to people ties. Both sides also exchanged views on regional and global issues and agreed to work together to reform and strengthen multilateral bodies including the United Nations (UN).
During the visit, External Affairs Minister S Jaishankar called on Prince Alois. Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, Skill Development Minister Jayant Chaudhary and Minister of State Jitin Prasada also held separate meetings with the delegation. A joint statement issued after the visit noted the steady growth of ties since India and Liechtenstein established diplomatic relations in 1993.
This was Prince Alois second trip to India in 2026. He had visited New Delhi in February 2026 to attend the AI Impact Summit. He had earlier visited India in 2010 and 2018.
Who Is Prince Alois and Where Is Liechtenstein Located?
Liechtenstein is a country. It is a tiny microstate in Central Europe in the Alps between Switzerland to the west and south and Austria to the east and north. It is one of only two doubly landlocked countries in the world, which means it is surrounded only by other landlocked countries. The other such country is Uzbekistan.
The official name is the Principality of Liechtenstein. Its capital is Vaduz, its area is 160 sq km and its resident population is about 40,000 to 41,000. That makes it the sixth smallest country in the world by area and the fourth smallest in Europe. German is the official language, and people commonly speak an Alemannic dialect. The national currency is the Swiss franc (CHF). Liechtenstein adopted the franc in 1924 and entered a customs union with Switzerland in 1923.
Liechtenstein is a constitutional monarchy. The head of state is the Prince. Hans-Adam II has been the reigning Prince since 1989. His son, Hereditary Prince Alois, has served as regent and Acting Head of State since 2004. Hereditary Prince means the first in line to the throne. The government is headed by a Prime Minister, and the parliament is called the Landtag, which has 25 elected members.
Liechtenstein is one of the richest countries in the world when income is divided by population. Its GDP per capita is above $200,000, among the highest in the world. The economy rests on industry, precision manufacturing and financial services. Well known Liechtenstein firms include construction tools maker Hilti. The country has low state debt, high industrial output and a strong banking and wealth management sector centred on Vaduz. This mix of small population, export oriented industry and finance explains why Liechtenstein is so rich.
Liechtenstein is a member of the United Nations, the Council of Europe and the European Free Trade Association (EFTA), which it joined as a full member in 1991. It is not a member of the European Union (EU). It takes part in the Schengen Area for passport free travel and in the European Economic Area (EEA) since 1995, which links EFTA states to the EU single market.
What Is EFTA and What Is the TEPA Agreement?
EFTA stands for the European Free Trade Association. It is an intergovernmental group set up to promote free trade among its members and with the rest of the world. EFTA was founded in 1960 through the Stockholm Convention. Norway and Switzerland were founding members. Iceland joined in 1970 and Liechtenstein became a full member in 1991. The EFTA Secretariat is headquartered in Geneva, with offices in Brussels and Luxembourg.
EFTA today has four member countries.
| EFTA Member | Capital | Currency |
|---|---|---|
| Switzerland | Bern | Swiss franc (CHF) |
| Norway | Oslo | Norwegian krone (NOK) |
| Iceland | Reykjavik | Icelandic krona (ISK) |
| Liechtenstein | Vaduz | Swiss franc (CHF) |
EFTA is different from the EU and the EEA. The table below shows the difference in simple terms.
| Group | Members Include | What It Means |
|---|---|---|
| EFTA | Iceland, Liechtenstein, Norway, Switzerland | Free trade group outside the EU customs union |
| EU | 27 European countries | Political and economic union with common laws and customs union |
| EEA | EU members plus Iceland, Liechtenstein and Norway | Extends the EU single market to three EFTA states. Switzerland stays out and links to the EU through separate deals |
TEPA stands for Trade and Economic Partnership Agreement. The full name is the India EFTA Trade and Economic Partnership Agreement. India and the four EFTA states signed it in New Delhi on 10 March 2024 after nearly 16 years of talks starting in 2008. It entered into force on 1 October 2025. This is India’s first free trade agreement with four developed European nations.
The pact has 14 chapters. It covers trade in goods, rules of origin, trade facilitation, trade remedies, sanitary and phytosanitary measures, technical barriers to trade, trade in services, investment promotion and cooperation, intellectual property, government procurement, competition, trade and sustainable development and dispute settlement.
On goods, EFTA has offered tariff cuts on 92.2 percent of tariff lines, covering 99.6 percent of India’s exports to the bloc. This includes all non farm goods and processed farm products. India has offered access on 82.7 percent of tariff lines, covering 95.3 percent of EFTA exports. India has kept sensitive items out of the deal. These include dairy, soya, coal and parts of agriculture, pharma and medical devices. Tariff cuts on products linked to Make in India and the Production Linked Incentive (PLI) Scheme will take place slowly over 5 to 10 years.
On services, India has made commitments in 105 sub sectors. EFTA offers cover 128 sub sectors from Switzerland, 114 from Norway, 110 from Iceland and 107 from Liechtenstein. The deal supports IT and business services, education, cultural services and movement of professionals. It also encourages mutual recognition of qualifications in fields such as nursing, accountancy and architecture.
Why the $100 Billion Investment and 1 Million Jobs Pledge Matters
The most talked about part of TEPA is its investment promise. Under Article 7.1 of the agreement, the EFTA states aim to increase Foreign Direct Investment (FDI) in India by $100 billion over 15 years and help create 1 million direct jobs in India through that investment. FDI means long term investment to build factories, offices and research units. It does not include Foreign Portfolio Investment (FPI), which means short term money put into shares and bonds.
The target is split into two phases. EFTA states aim to bring $50 billion in the first 10 years from entry into force and another $50 billion in the next 5 years. The pledge is the first time any free trade deal signed by India has linked market access to investment and jobs in this way. If the targets are not met, India can, after reviews and consultations held after the 15 year period, withdraw some tariff concessions. There is no direct court style dispute case under this chapter. The goal is to push both sides to meet the targets through joint review.
To track the promise, India set up a dedicated India EFTA Desk in February 2025. The Desk works as a single window to help EFTA firms invest, expand and set up operations in India. It focuses on renewable energy, life sciences, engineering and digital transformation. It also supports joint ventures, small business tie ups and technology partnerships.
The deal entered into force with a Prosperity Summit in New Delhi on 1 October 2025, hosted by Commerce and Industry Minister Piyush Goyal. To mark the first anniversary, the India EFTA Prosperity Summit 2026 was held in New Delhi on 7 October 2026. Liechtenstein was represented by Home Affairs, Economy and Sport Minister Hubert Buchel along with business leaders.
Together, India and the EFTA states account for a combined GDP of about $5.4 trillion. Two way trade in goods has risen steadily, while trade in services has roughly doubled in the last ten years. The agreement also simplifies customs steps. Indian exporters can now get electronic Certificates of Origin on the Trade Connect ePlatform run by the Directorate General of Foreign Trade (DGFT), using self declaration or an authorised agency.
What Did India and Liechtenstein Discuss on Trade and Investment?
Commerce and Industry Minister Piyush Goyal paid a courtesy call on Prince Alois on 28 October 2026. The meeting focused on stronger economic engagement under TEPA. Goyal said the $100 billion investment commitment shows the shared goal to deepen investment links and create large opportunities for business. He invited Liechtenstein firms to explore manufacturing partnerships, technology collaboration and research and development in India, and to build links with Indian suppliers and Micro, Small and Medium Enterprises (MSMEs).
Goyal pointed to India’s strong growth base. He said cumulative FDI inflows were $843 billion between 2014-15 and 2025-26, with a record $94.53 billion in 2025-26. He also cited India’s startup base of 2.5 lakh startups supporting 25.42 lakh jobs across more than 770 districts. The talks listed precision engineering, advanced manufacturing, industrial technologies and innovation as priority areas.
President Murmu told the delegation that Liechtenstein’s strength in advanced manufacturing, innovation and financial services fits well with India’s skilled workforce, manufacturing capacity and large market. Finance Minister Nirmala Sitharaman discussed possible work with the Prince and Princess in advanced engineering, infrastructure and innovation.
A key proposal was a Double Taxation Avoidance Agreement (DTAA). A DTAA is a treaty between two countries to ensure that the same income is not taxed twice. Liechtenstein has shared a draft text. The Ministry of Finance will examine it. Liechtenstein says the treaty would give legal certainty and make it easier for its firms to invest in India.
Current economic ties are small, so room for growth is large. Liechtenstein’s cumulative investment in India stands at about $110 million. Bilateral trade was about $3.3 million in FY26, with Indian exports under $1 million. Indian exports included electric heating resistors, organic compounds, parts of furnaces and vacuum pumps. Imports from Liechtenstein were mainly precision instruments and machinery.
Three company examples show the direction of ties. Hilti runs Hilti Manufacturing India in Vadodara, an export oriented plant that is expected to ship about 95 percent of its output abroad. LGT, a Liechtenstein wealth management group, has opened an office in GIFT City in Gujarat, India’s international financial hub. Savannah Seeds works on hybrid seeds and farm technology that can raise farm output, including in rice.
Key Takeaways
- Hereditary Prince Alois, Acting Head of State of Liechtenstein, paid the first ever state visit to India from 25 to 28 October 2026.
- Prince Alois received a ceremonial reception at Rashtrapati Bhavan and held bilateral talks with Prime Minister Modi at Hyderabad House on 27 October 2026.
- The India EFTA TEPA was signed on 10 March 2024 and entered into force on 1 October 2025.
- Under Article 7.1 of TEPA, EFTA states aim to bring $100 billion in FDI to India over 15 years and help create 1 million direct jobs.
- EFTA has four members: Switzerland, Norway, Iceland and Liechtenstein, with its secretariat in Geneva.
