India's appeal has already reflected a broader shift among businesses in Europe eager to balance the costs of a US-China trade spat and recognition that the Chinese economy is, by comparison to India, losing steam.
To meet demand, ABB has been building factories, offices and showrooms in India, with eight projects completed since 2023, increasing its workforce from 6,000 to 10,000 since 2020. The pact still requires parliamentary approval, and is expected to become effective in either late 2025 or early 2026. In return for EFTA-based firms investing US$100 billion over 15 years - which aims to create 1 million jobs - India has promised to provide a favourable investment climate.
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