India is the largest democracy and the world’s most populous nation. By 2030, it is expected to have the largest and youngest workforce in the world and take third position as the largest economy, surpassing both Japan and Germany. Structural reforms and investments continue to drive economic growth and social transformation, creating a solid foundation for India’s emergence as an economic and strategic powerhouse.
A strategic geographic location, growing influence in APAC, and role as strong geopolitical player make India an attractive destination for global investments. India is a member of global alliances including the G20, BRIC, QUAD, SCO, is frequently invited as an observing member to G7 summits and holds the G20 presidency for 2023.
India’s strengths lie in its ability to continually adapt to the everchanging geopolitical situation while also leveraging the benefits of positive demographic changes, digitalisation, and steady governance.
India has also made significant advancements in technological infrastructure, including improved internet connectivity, cloud computing services, and data centres. This infrastructure supports the growth and scalability of innovative technology companies.
By capitalising on these trends and aligning with India's vision for sustainable and inclusive development, Swedish businesses can unlock tremendous potential and contribute to the country's economic success.
Vast market potential
India and Sweden share a long history of collaboration and 2023 marks the 75 years of diplomatic relations between the two countries. Both countries have signed dedicated MoUs in several areas including health, science and technology, energy, environment and urban development, defence, space, and MSMEs for promotion of research and development cooperation and introduction of sustainable technologies.
Opportunities abound for:
- Industry-start-up collaboration for co-inventing and designing innovative solutions
- Collaboration with Indian companies for them to leverage Swedish technologies
- University or industry programmes to nurture local talent and be a catalyst for the next wave of start-ups in healthcare, sustainability, and DigiTech to solve the challenges of today and tomorrow.
While the potential is vast, challenges still exist in India and Swedish companies need to be aware that bureaucracy, corruption, protection of intellectual property, and a certain level of resistance towards foreign investments exists.
How we can help
For more than 25 years we have been helping Swedish companies grow in India. Now, our two offices in Bangalore and New Delhi can offer extensive access to the Indian market as well as to neighbouring markets including Bangladesh, Sri Lanka, Pakistan, Bhutan, Nepal, and the Maldives.
We can help you understand the business culture, plan your market entry in relevant segments, and suggest suitable partners, to mention a few of our key services.
Cecilia OskarssonTrade & Invest Commissioner India
I first came to India in 2006-2008 and then again in 2010-2013 to advise Swedish companies on business and investment opportunities, as well as serving as the country manager for a Swedish textile manufacturing company in India. Now, I am finally back, and so much has changed.
What are the best areas to invest in?
Sweden should continue to invest in key areas of collaboration such as defense, healthcare, and innovation, as well as new sectors like space, digitalization, and gaming. India offers attractive investment opportunities in sectors including defense, space, digital market, aviation, railways, ports, renewable energy, and healthcare. The Indian government promotes foreign direct investment and aims to improve infrastructure, employment, and productivity. Swedish companies already have a presence in India, and investments from Sweden have created significant employment opportunities. It is a favorable time to invest in India with support from the Indian government and opportunities for future growth.
Currently, there are over 200 Swedish companies operating in India, and their investments totaling $1.7 billion have created 200,000 direct jobs and 2,200,000 indirect jobs. The Indian government has opened up most key infrastructure sectors for 100% foreign direct investment under the "Automatic route" principle. The main plan aims to increase employment, improve infrastructure and industry productivity, and make India a manufacturing hub attracting foreign investors. Through multimodal connections, manufacturers can quickly access domestic and international markets. It is a great time to invest in India.