Swiss Companies Invest in India Following Trade Deal

Swiss companies, including ABB and Kuehne+Nagel, are increasingly investing in India, driven by a $100 billion trade deal with the European Free Trade Association (EFTA) that promises to enhance market access. The agreement, which will reduce tariffs on various exports, reflects a strategic shift by European businesses away from China amid its economic slowdown. ABB's CEO, Morten Wierod, noted that India has become a significant market, with orders increasing by 27% annually, leading to expansions in factories and workforce growth from 6,000 to 10,000 since 2020. India is projected to become ABB's third-largest market globally in the coming years. While the TEPA deal is expected to boost trade, companies have indicated that current investments are not exclusively linked to it. This shift in focus underscores a broader trend of businesses seeking alternatives to China amidst geopolitical tensions.