The trade and economic partnership TEPA agreed to an investment pact in March 2012 to invest 100 billion dollars in India with easier and cheaper access to the Indian market of 1.4 billion people. Thus, the European Free Trade Association, whose most prominent member is Switzerland, and others include Norway, Iceland, and Liechtenstein, benefits.
Indian investments by Swiss companies like engineering group ABB and transport firm Kuehne Nagel are on the rise, with a $100 billion regional trade deal expected to further open it up to businesses long geared towards China.
The appeal for India has already reflected a broader shift among European businesses eager to balance the costs of a US-China trade spat and recognize that the Chinese economy is losing steam compared to India.
But the trade and economic partnership signed in March with the European Free Trade Association, whose most prominent member is Switzerland, is likely, when ratified, to provide an extra incentive to Swiss investment as it will slash tariffs on exports from chocolates to watches and machinery.
Under the agreement, EFTA, whose other members are Norway, Iceland, and Liechtenstein, will invest $100 billion in India and benefit from more and cheaper access to the 1.4 billion-person Indian market. India expects the agreement to boost its exports of pharmaceuticals, clothing, and machinery.
“India is now really booming,” said Morten Wie rod, chief executive officer of ABB, the electrical and industrial automation supplier, expanding its footprint in India after its orders rose an average of 27 percent per annum for the past three years.
