Sweden marked the arrival of India's Prime Minister Narendra Modi by deploying Jas 39 Gripen fighter jets to escort his aircraft to Landvetter Airport in Gothenburg. The visit, which comes as part of Modi's multi-nation European tour, highlights the growing strategic and economic ties between Sweden and India.

After departing from The Hague, where the Indian leader received the return of significant historic Chola-era copper plates previously held in a Dutch museum, Prime Minister Modi made a brief stop in Gothenburg. The visit is strategically timed ahead of the third Nordic-Indian summit scheduled in Oslo, with discussions set to focus on trade, innovation, and sustainable industry.

Strengthening Economic and Industrial Partnerships

Swedish officials, business leaders, and representatives from the European Union greeted the Indian delegation in Gothenburg. The gathering at World of Volvo, near the city's well-known amusement park Liseberg, brought together influential European CEOs and the President of the European Commission, Ursula von der Leyen. The event is seen as a platform to deepen cooperation in areas such as green technology, sustainable industry, and innovation.

According to Sweden's export and investment agency, Business Sweden, the country has become increasingly attractive to Indian businesses. Approximately 75 Indian-owned companies now operate in Sweden, collectively employing around 7,000 people. In contrast, about 300 Swedish firms are present in India, with a workforce exceeding 220,000. These figures are expected to rise following the recent signing of a free trade agreement between the European Union and India, poised to reduce tariffs on goods and enhance bilateral trade flows.

Free Trade Agreement Set to Boost Bilateral Trade

The comprehensive EU-India trade agreement, finalized after nearly two decades of negotiation, is anticipated to eliminate up to 90 percent of tariffs on industrial products. For Sweden, the most significant benefits are projected in the automotive sector. Import duties on EU vehicles entering India are set to decrease from over 100 percent to 40 percent, with the potential to fall to 10 percent over time. Similar reductions are expected for machinery and chemical imports, offering substantial advantages to Swedish industry and exporters, particularly in western Sweden.

Business Sweden reports that a majority of Swedish companies operating in India anticipate positive outcomes from the free trade deal. The agreement is expected to facilitate market expansion, foster innovation, and support the growth of Swedish and Indian businesses in both regions.

Gothenburg: A Hub for Indian Expansion in Sweden

Gothenburg has emerged as a central location for Indian business activity in Sweden. Over the last decade, the number of Indian residents in the Gothenburg region has quadrupled, surpassing Stockholm's figures. This trend began when Indian technology giant HCL took over parts of Volvo IT's operations, triggering a wave of Indian corporate establishments in the area. Today, Indian-owned companies, including Tata Technologies, Infosys, and KPIT, employ nearly 2,000 people in the region, supporting the local economy and strengthening bilateral ties.

Collaboration on Sustainability and Innovation

During the visit, Sweden and India reaffirmed their commitment to advancing sustainable industrial development. Both nations are partners in the Leadership Group for Industry Transition (LeadIT), an initiative designed to support heavy industry in achieving climate targets under the Paris Agreement. The two countries are now encouraging additional Nordic partners to join and actively contribute to this collaborative effort for clean technology and innovation.

As Sweden and India continue to strengthen diplomatic and economic relations, the recent high-level visit underscores the importance of collaboration in innovation, trade, and sustainability between the two nations and the wider European Union.