Geneva, Oct 4 (IANS): India and Switzerland have signed a memorandum of understanding (MOU) related to bilateral cooperation on financial matters, the Swiss government announced Monday.

The MOU was signed during a state visit by the Indian President, Pratibha Devisingh Patil. It is the first visit by an Indian Head of State since 2005.

"With the signature of the memorandum of understanding, the Federal Department of Finance (FDF) and India's Ministry of Finance have laid the foundations for fostering financial dialogue between the two countries," the Swiss government said in a press communique.

In the MOU, Bern agrees to coordinate with New Delhi on their positions and work together within organisations and international forums to develop their cooperation in terms of policies and financial market regulation and to strengthen their diagnostic capabilities regarding international macroeconomic developments.

The Indian President was treated with a ceremonial welcome by a guard of honour on the Federal Square and official speeches in Parliament Monday. Following that, bilateral talks were carried out between Pratibha Devisingh Patil and the Swiss Federal President Micheline Calmy-Rey.

On the second day of the two-day visit, the Indian President will travel to the canton of Vaud, in the French-speaking western part of Switzerland, the Swiss government stated.