Newest India-Switzerland Agreement Opens Doors for Investments Worth $100B

Swiss companies like ABB and Kuehne+Nagel are ramping up investments in India, driven by the country's growing appeal as a trade destination. A new US$100 billion trade and economic partnership agreement (TEPA) signed in March with the European Free Trade Association (EFTA), led by Switzerland, is set to incentivize further investment by reducing tariffs on Swiss exports to India, spanning chocolates, watches, and machinery. The agreement, which is expected to spur investment upon ratification, aims to strengthen economic ties and provide Swiss businesses easier access to India's expanding market of 1.4 billion people.

The deal reflects a shift among European businesses, which are increasingly exploring alternatives to China amidst ongoing trade tensions with the U.S. and concerns over China’s slowing economy. India, by comparison, has demonstrated significant economic growth, which companies like ABB have capitalized on, with its orders in India growing by 27% annually over the last three years. ABB’s CEO, Morten Wierod, highlighted the company's expansion in India, with investments in factories, offices, and R&D facilities that have boosted its workforce from 6,000 to 10,000 since 2020. ABB sees India becoming its third-largest market after the U.S. and China.

Despite India’s rising prominence, ABB and other Swiss companies maintain a strong presence in China, underscoring a balanced approach to growth in both Asian markets.