Davos 2025: India Poised To Become Among Largest Economies In World: ABB CEO Morten Wierod

Large economies, particularly the US, remain the driving forces behind global growth, but India is also rapidly climbing up the ladder and can become among the largest economies in the world, according to Morten Wierod, chief executive officer of ABB Ltd.

"With China's stimulus measures aimed at reigniting growth, there is potential for a stronger China in the coming years," Wierod told NDTV Profit on the sidelines of the World Economic Forum in Davos.

Wierod is also positive about the global growth outlook, particularly for ABB, as the company is involved in the electrification of the energy transition and supporting the decarbonization of industries. He said the growth pattern in recent years would include periods of acceleration, followed by slowdowns.

While growth is expected in the US, Wierod emphasised that Europe must enhance its competitiveness to expand its market. According to Wierod, global trade landscape is not wholly dependent on the US and its tariffs as these tariffs led to increased local investments.

He said companies are becoming more local by positioning their supply chains closer to demand. This helps to reduce the impact of tariffs and increase growth in each of the economies.

Artificial Intelligence 

"AI is set to transform how we operate and conduct business along with having a significant impact on society," Wierod said. "However, this change isn't always positive. I've observed many risks and potential dangers associated with AI, particularly in the media."

For ABB, Wierod highlighted that AI presents a tremendous business opportunity. In the past, AI represented only 2% to 3% of the overall electrification business. Last year, it grew to 12%, and now it is at 15%.

"AI is not only a major business opportunity but also a tool we're using internally to become leaner and drive efficiency. There are numerous AI tools available to help us with this," he said.

Wierod emphasised that AI would not only help in accessing information faster but also allow companies to impress their customers.