India–Sweden Economic Ties: A High-Trust Corridor for Innovation, Manufacturing and Green Growth

India–Sweden economic relations have moved from traditional commerce to a broader technology-driven partnership. Trade in goods has risen sharply, Swedish companies have deep roots in India, Indian firms are expanding in Sweden, and both sides are using innovation, clean technology, manufacturing, defence, transport, space and healthcare to build a modern economic bridge.

Sweden’s strengths are clear: manufacturing, IT, life sciences, circular economy, clean technologies, automotive, telecom, pharmaceuticals, mining, forestry, steel, precision equipment and industrial machinery. India’s draw is equally visible: scale, talent, market expansion, manufacturing opportunity and a growing innovation economy. The result is a relationship that is not merely about buying and selling; it is about co-creation, industrial transition and strategic investment. 

In Numbers

• Fast trade growth: India–Sweden goods trade rose from USD 2.86 billion in 2016 to USD 7.75 billion in 2025.
• Asia ranking: India is Sweden’s third-largest trading partner in Asia.
• Investor status: Sweden is the 22nd largest investor in India.
• FDI figure: Swedish FDI equity inflows into India from April 2000 to December 2025 stood at USD 2.825 billion.
• FDI share: Swedish FDI accounted for 0.36% of India’s total FDI equity inflow in that period.
• Swedish companies in India: Around 280 Swedish companies have a business presence in India.
• Indian companies in Sweden: Around 75 Indian companies have a business presence in Sweden.
• Deep corporate roots: Swedish business presence in India goes back over a hundred years through companies such as Ericsson, Swedish Match, SKF and ABB.
• Pune connection: Swedish companies have had a special concentration in Pune since the 1960s.
• New investment wave: Swedish investment in India has expanded over the last two decades and gathered further pace in the past five years.
• Make in India link: Swedish companies have a strong manufacturing record in India and rank among the important foreign participants in Make in India.
• Defence manufacturing: SAAB has started building a fully owned plant in Haryana to manufacture Carl Gustaf Mark IV shoulder-fired systems.
• Indian IT presence: Indian companies in Sweden are especially visible in the IT sector.
• Indian acquisitions: Bharat Forge, Wipro, Cadila Pharmaceuticals, Aditya Birla, Tata group, Crompton Greaves, Altruist Technologies, HCL Technology and Kalpataru are among Indian names linked with Swedish acquisitions or presence.
• Biotech and pharma: Indian companies such as Dr Reddy’s, Biocon, Kemwell and Cadila Pharma have built collaborative relations in Sweden.
• Space cooperation: The Swedish Space Corporation and ISRO are collaborating, including on India’s Venus Orbiter Mission.
• Innovation day: The annual India–Sweden Innovation Day has become a visible platform for clean energy, AI and circular economy cooperation.
• Business sentiment: The India Business Climate Survey 2025 showed strong optimism among Swedish businesses in India.
• Business confidence: Seventy-seven per cent of respondents in the 2025 survey had a positive view of India’s business climate.
• Subnational diplomacy: Jharkhand, Uttar Pradesh and Tamil Nadu have engaged Sweden for investment promotion.
• Industrial transition: India–Sweden economic engagement increasingly connects investment with climate responsibility.
• Green economy: Renewable energy, green hydrogen, batteries, waste-to-energy, circular economy and sustainable mining are central to the emerging economic agenda.

Trade and Investment Snapshot

Swedish Business Presence in India

Indian Business Presence in Sweden

Major Economic Agreements and Platforms

Economic Timeline