Swiss mercenaries fought in the service of France and England during the colonisation of India in the 18th century. They were followed at the beginning of the 19th century by Swiss Jesuits and Protestants. In the south of India, the Basel Mission was very active in the fields of religion, medical provision, education and business. In 1851 the Volkart Trading Company was established in Basel and Bombay. It rapidly expanded its network of branches and diversified its activities in India and became the backbone of Switzerland's economic and consular presence in India. In the first half of the 20th century, the number of Swiss nationals working in India rose rapidly.

Switzerland recognised India immediately after its independence in 1947 and soon established diplomatic relations. In 1948, Switzerland was the first state to sign a Treaty of Friendship and Establishment with the newly-founded state. Economic and trade relations developed rapidly. The first major investments by Swiss companies came in the mid fifties. Swiss development cooperation began in the sixties. During the Bangladesh dispute, Switzerland represented the interests of India in Pakistan and those of Pakistan in India from 1971 to 1976. India remained the principal recipient of Swiss development aid until the 1980s.

The economic opening of India from 1991 onwards led to a new phase in economic relations. Today India is one of Switzerland's main partners in Asia. Bilateral and political contacts are constantly developing. Trade and scientific cooperation are booming. Economic, scientific and cultural cooperation are now taking the place of development aid.