Swiss companies like ABB and Kühne+Nagel are increasing investment in India post-trade agreement

From Investing.com: 2024-11-15 05:36:00

Swiss companies like ABB and Kühne+Nagel are turning their focus to India following a free trade agreement signed in March with the European Free Trade Association. The agreement will reduce tariffs on goods like chocolate, watches, and machinery, making India an attractive investment destination. ABB has seen significant growth in orders for its Indian production sites, prompting heavy investments and expansion. Kühne+Nagel has also increased its presence in India, reflecting a larger trend among European companies to diversify away from China.

The trade pact between India and the EFTA countries is expected to bring $100 billion in investments over the next 15 years, benefiting various sectors like automotive, food processing, railways, and finance. Swiss companies, in particular, see strong opportunities in machinery manufacturing, luxury items, and transportation systems. The agreement also opens up opportunities for Swiss transport companies to invest in India’s railway sector, boosting infrastructure development and enhancing export industries.

As European companies look to reduce their reliance on China, India has emerged as a favorable alternative. The Swiss National Bank data shows that India has surpassed China as the top destination for Swiss direct investments. The move away from China is evident across Europe, with countries like Germany seeking to strengthen ties with India in sectors like logistics and automotive. With India’s strong economic growth projections and favorable market conditions, Western companies are expected to show increased interest in the Indian market in the coming years.



Read more at Investing.com: India Attracts Swiss Investment: Trade Agreement Ushers in Economic Growth