Swiss Companies Eye India as $100 Billion Trade Deal Expands Opportunities
India is increasingly becoming a top investment destination for Swiss companies like ABB and Kuehne Nagel, thanks to a $100 billion regional trade agreement with the European Free Trade Association (EFTA).
Signed in March, the Trade and Economic Partnership Agreement (TEPA) is expected to open new business avenues by reducing tariffs and making India’s growing market more accessible.
EFTA-India Trade Agreement Spurs Investment
The TEPA deal with EFTA, which includes Switzerland, Norway, Iceland, and Liechtenstein, promises to simplify trade and investment between India and these nations. Switzerland, the largest EFTA member, is particularly set to benefit from reduced tariffs on products such as chocolates, watches, and machinery. In return, India aims to increase exports of pharmaceuticals, textiles, and machinery.
India’s expanding market of 1.4 billion people has drawn global attention, especially as businesses seek alternatives to China amid rising US-China trade tensions and a slowdown in the Chinese economy.
Swiss Firms Boost India Operations
ABB, a Swiss industrial automation giant, is leading the charge in India. The company has expanded significantly, with its orders growing by 27% annually over the past three years. ABB has invested in new factories, offices, and research facilities across India, increasing its workforce from 6,000 to 10,000 since 2020.
“We are investing in India not only for local manufacturing but also in research and development,” said ABB CEO Morten Wierod, underscoring India’s booming industrial growth.
With the EFTA-India trade deal providing additional incentives, more global firms are expected to follow ABB’s lead, diversifying away from China and strengthening their presence in India’s burgeoning economy.
