The agreement comes at a time when the issue of black money stashed in Swiss banks has become a matter of major political debate back home in India.
The agreement was signed during President Pratibha Patil's visit to Switzerland during which she has held bilateral talks with her Swiss counterpart Micheline Calmi-Rey on a number of issues including economic cooperation.
The agreement that will be notified on October 6, comes close on the heels of the signing of an amending protocol to the Double Taxation (Avoidance) Agreement (DTAA), to provide a framework for exchanging tax related information.
In a statement to the press, President Patil said: "we noted that the amending protocol to the Double Taxation (Avoidance) Agreement would provide a framework for exchange of tax related information of importance to either side, when it enters into force".
"A Memorandum of Understanding on financial dialogue was also signed to provide a useful forum for exchange of views on financial and macroeconomic issues," she said.