India, Sweden seek to boost trade, investment ties
India and Sweden explored ways to further strengthen their bilateral trade and investment partnership during a meeting between Union Minister of Commerce and Industry Piyush Goyal and Swedish Minister for Foreign Affairs Maria M Stenergard in New Delhi on Monday.
Sweden is the 21st largest investor in India, with cumulative foreign direct investment (FDI) inflows amounting to USD 2.51 billion from April 2000 to March 2024.
Key sectors in India attracting Swedish FDI include automobiles, industrial machinery, engineering, electrical equipment, and metallurgical industries.
“We discussed ways to further strengthen the India-Sweden bilateral trade and investment partnership, fostering economic cooperation and opening up new business opportunities in both nations,” Minister Goyal said on X.
Both countries see potential for collaboration in areas such as green technologies, renewable energy, smart infrastructure and healthcare.
The Joint Economic Commission (JEC) remains the primary institutional platform for government-to-government dialogue between the two nations. India and Sweden’s bilateral relationship is underpinned by robust economic ties, expanding trade, and increasing two-way investments.
In June 2024, India exported goods worth USD 104 million to Sweden and imported USD 171 million, resulting in a trade deficit of USD 66.6 million. Compared to June 2023, India’s exports to Sweden grew by USD 32.4 million (45.2 per cent), while imports from Sweden increased by USD 30.3 million (21.6 per cent). Key exports from India to Sweden until June 2024 include: ready-made garments of cotton worth USD 8.82 million, electric machinery and equipment worth USD 5.31 million, automobile spare parts worth USD 5.22 million, iron and steel products worth USD 3.9 million, and ready-made garments of other textile materials worth USD 3.84 million.
Key imports from Sweden to India as of June 2024 include:
Iron and steel worth USD 22.8 million, pulp and waste paper worth USD 16.3 million, paper, paperboard, and products worth USD 12.3 million, auto components/parts worth USD 11.3 million, and industrial machinery for dairy and other sectors worth USD 9.19 million. Sweden’s growing engagement with India is part of a broader strategy to enhance cooperation with like-minded nations in response to global shifts. Russia’s invasion of Ukraine solidified Sweden’s and Finland’s decisions to join NATO, reshaping the European security landscape. Concurrently, Sweden has adopted a more critical stance toward China due to concerns over China’s influence on the rules-based global order.
