Swiss Companies Shift Focus from China to India
Swiss giants such as ABB and Kuehne Nagel are ramping up investments in India as the two nations prepare to benefit from the $100 billion Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA). The agreement, set to cut tariffs and create job opportunities, comes amid a strategic shift by businesses looking beyond China’s slowing economy and geopolitical risks.
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TEPA: A Game-Changer for Swiss-Indian Trade
TEPA, signed in March 2024, is expected to reduce tariffs on 94.7% of Swiss exports to India, from chocolates to industrial machinery. Though the agreement is pending parliamentary approval and will likely take effect by 2026, businesses are already optimistic about easier market access and competitive advantages over companies in the EU and UK.
Why Swiss Firms Are Doubling Down on India
ABB, a leader in industrial automation, has expanded its workforce from 6,000 to 10,000 since 2020, driven by a 27% annual rise in orders from India. “We are building for India, in India,” said ABB CEO Morten Wierod, underscoring the company’s commitment to local production.
Meanwhile, logistics giant Kuehne Nagel has more than doubled its workforce to 4,800 and opened new hubs in Chennai, Gurugram, and Kolkata. Managing Director Anish Jha praised India’s National Logistics Plan for lowering transportation costs, boosting growth, and supporting logistics infrastructure.
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A New Investment Destination for Precision Engineering
Even smaller companies are getting in on the action. Feintool, a precision components manufacturer, is building its first plant in Pune, which will employ 200 people and serve India’s growing automotive sector. In 2023, India accounted for 1.5% of Swiss mechanical exports, but that share is rising—growing 8% year-over-year. This trend reflects how companies are rebalancing their supply chains away from China, favoring India’s dynamic economy.
Conclusion: India’s Red Carpet for Global Investment
TEPA will provide Swiss companies with zero-tariff access and help generate 1 million new jobs in India over the next 15 years. As businesses shift operations from China, India is positioning itself as a global trade hub, offering local manufacturing incentives, infrastructure growth, and a booming market of 1.4 billion consumers. The Swiss-India partnership signals a broader trend—one where India is quickly becoming a preferred destination for global firms eager to tap into new opportunities.
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