This article covers the economic relationship between India and Sweden: trade in goods, investment in both directions, the companies active in each market, the institutional mechanisms that bring governments and businesses together, and the economic agreements in force. It draws only on the Ministry of External Affairs (MEA) bilateral brief of May 2026, and all figures are as stated there.

Sweden's economy as the brief describes it

According to the MEA brief of May 2026, Sweden is an externally oriented economy with a focus on services and industry, especially manufacturing, IT, life sciences, circular economy and clean technologies. Its natural resources include iron, timber, fisheries and hydro power. The brief notes that Sweden ranks 2nd among the 139 economies and 1st within the EU in the Global Innovation Index (GII) 2025.

Sweden's major industries, as listed in the brief, include automotive, telecommunications, pharmaceuticals, industrial machines, precision equipment, chemical goods, home appliances, mining, forestry, and iron and steel. The brief notes that many large businesses belong to the Wallenberg group, including Ericsson, SEB, SAAB, Electrolux, SKF, Atlas Copco and Astra Zeneca. Other leading companies and brands it names include IKEA, H&M, Tetra Pack, Alfa Laval, BAE, Volvo, Sandvik, Scania, Spotify and Truecaller.

Trade and investment figures

The brief states that India-Sweden trade and investment have grown rapidly in recent years. As of the brief, it gives the following figures:

  • Trade in goods increased from USD 2.86 billion (2016) to USD 7.75 billion (2025).
  • Sweden is the 22nd largest investor in India.
  • According to DPIIT figures, FDI equity inflows from April 2000 to December 2025 were 2.825 billion, or 0.36% of total FDI equity inflow.
  • India is the 3rd largest trading partner for Sweden in Asia.
  • The number of Swedish companies with business presence in India has increased to 280 in the last 7-8 years or so.
  • The number of Indian companies with business presence in Sweden has increased to 75 over a similar period.

Swedish companies in India

Swedish business presence in India dates back more than a hundred years, and the brief cites Ericsson, Swedish Match Co., SKF and ABB in this context. It has been concentrated especially in Pune since the 1960s. The brief describes a further wave of investment over the last two decades, which it says has picked up further in the past five years.

According to the brief, Swedish companies are present in India in sectors including IT (Ericsson, Spotify, Truecaller), automobiles (Volvo, Scania), earth moving and mining (Alfa Laval, Scania), process plant equipment (Sandvik), electrical engineering and AI (ABB, SKF), pharmaceuticals (AstraZeneca), packaging (Tetra Pack), sustainable urban solutions, retail (IKEA, H&M) and defence (SAAB). Several Swedish SMEs are also active, especially in IT, renewable energy and manufacturing.

The brief notes that Swedish companies have a long record of manufacturing in India and rank among the top in Make in India. SAAB has started building its fully owned plant in Haryana to manufacture Carl Gustaf Mark IV shoulder fired mortars. In March 2025, an MoU was signed between the Government of Maharashtra and Candela, an electric boat manufacturing company, marking an investment of ₹1990 crore which the brief says will generate 6,000 jobs.

Indian companies in Sweden

The brief describes a growing Indian business presence in Sweden, especially in the IT sector. Indian companies that have made acquisitions in Sweden in recent years include Bharat Forge, Wipro, Cadila Pharmaceuticals, Aditya Birla, Tata group, Crompton Greaves, Altruist Technologies, HCL Technology and Kalpataru. Indian biotech and pharma companies including Dr. Reddys, Biocon, Kemwell and Cadila Pharma have formed collaborative relations in Sweden. India was among the select countries whose business delegations were invited to the Join Sweden Summit in June 2022.

Business sentiment

The brief describes the overall outlook in the India Business Climate Survey 2025, released by the Swedish Chamber of Commerce in India and Business Sweden, as "strongly optimistic". 77% of respondents had a positive view of the business climate in India, and a significant number were planning to increase their investments.

Joint Commission and business mechanisms

The 21st session of the India-Sweden Joint Commission for Economic, Industrial and Scientific Cooperation was held in Stockholm in June 2025. CIM Shri Piyush Goyal visited Stockholm from 11-12 June with senior officials and a business delegation, and held discussions with Mr. Benjamin Dousa, Minister for International Development Cooperation and Foreign Trade, Mr. Andreas Carlson, Minister of Infrastructure and Housing, and Ms. Jessica Rosencrantz, Minister for EU Affairs.

The 20th session was held in Delhi in December 2022, co-chaired by Swedish Minister for Foreign Trade Johan Forsell and CIM Shri Piyush Goyal. During that visit Minister Forsell also met Minister for Railways, Communications and Electronics and IT Shri Ashwini Vaishnav.

Other mechanisms named in the brief include the India Sweden Business Round Table (ISBLRT) and the Sweden India Business Council (SIBC), alongside entities such as Invest India, Business Sweden, CII and DPIIT. The India-Sweden Business Leaders Round Table met in New Delhi on 17 March 2025. Swedish Foreign Minister Stenergard took part, and the meeting saw the signing of an MoU by representatives from Ericsson, Volvo Group and Bharti Airtel.

The Embassy of India supports initiatives such as Engaging India at Almedalen. Sweden hosts a Sweden India Nobel Memorial Week in India, which the brief says focuses on promoting business and academic linkages, among other aims.

Trade visits and delegations

The brief records a regular exchange of official and business delegations. In the last 6 years, around 60 Indian delegations at Ministerial or Senior Official level have visited. Examples given in the brief include:

  • In April 2025, a delegation from Jharkhand led by Chief Minister H.E. Hemant Soren visited Sweden to attract Swedish investment in mining, energy, infrastructure and manufacturing.
  • Investment promotion Ministerial delegations from UP and Tamil Nadu have visited Stockholm in recent years.
  • Dr. V. Anantha Nageswaran (CEA) visited Stockholm during 18-21 March 2026 and engaged with academic stakeholders, political leadership, financial institutions and the business community.
  • Sweden's State Secretary for Foreign Trade, Mr. Håkan Jevrell, made his fifth visit to India in December 2024 and engaged with senior representatives from eight Swedish companies operating in India.

During the State Secretary for Foreign Trade's visit to India in March 2023, two MoUs were signed: between SERB (Science & Engg Research Board) and STINT (Swedish Foundation for International Cooperation in Research & Higher Education), and between MIDC (Maharashtra Industrial Development Corporation) and SIBC. Minister for Financial Markets Niklas Wykman participated in the 2nd edition of the CII India Nordic Baltic Business Conclave in New Delhi on 22-23 November 2023, and met Finance Minister Smt. Nirmala Sitharaman, CIM Shri Piyush Goyal and EAM.

At ministerial level, CIM Shri Piyush Goyal and his counterpart Minister Anna Hallberg held a virtual interaction in April 2021. The two Ministers had addressed the CEO Forum in December 2020 in virtual format and held discussions in May 2020. The King of Sweden and the Swedish Ministers of Foreign Trade and Infrastructure visited the India Pavilion at the Dubai Expo in 2022.

Economic agreements

The brief records agreements between India and Sweden on the avoidance of Double Taxation and on Bilateral Investment Protection. In 2022, an MoU on Financial Regulation was signed between the International Financial Services Centres Authority of India (IFSCA) and FI (Finansinspektionen) of Sweden.