Quick Summary
Swedish companies in India are finding new business opportunities in 2026, driven by strong bilateral ties, rising demand for sustainable solutions, and India’s growing economy. Key sectors include clean energy, smart manufacturing, and digital transformation.
Currently, more than 280 Swedish companies have bases in India.
Although most Swedish firms began entering the market in the 2000s, some had established branches in India even before its independence.
For instance, a Sweden-based global telecom giant, LM Ericsson, popularly known as Ericsson, supplied manual switchboards for the Indian government since 1903.
It was the first company to provide GSM equipment in India. SKF, ASEA (ABB Group), Swedish Match, and Sandvik were among the first Swedish companies to set foot in India.
With the widening scope for business investment in India and frequent bilateral visits from top leaders over the years, the relationship between New Delhi and Stockholm is closer than ever.
Today, India is Sweden’s third-largest trading partner in Asia, after China and Japan.
Over the last decade, India has seen a significant increase in the number of Swedish companies setting up operations there.
According to the India Business Climate Survey 2023, about 86% of Swedish companies found India’s business ecosystem encouraging and supportive.
Also, several Indian government initiatives to ease the flow of foreign direct investment (FDI) are crucial in creating enormous business opportunities for Swedish small & medium businesses (SMBs).
In 2023, India and Sweden marked their 75 years of diplomatic relations, and both sides are looking to expand their existing business collaboration and partnership in the coming years.
In February 2024, the Swedish Foreign Minister, Tobias Billström, addressed over 100 industry executives in Bengaluru, India’s most prominent technology hub.
The meeting, organized by the Confederation of Indian Industry (CII) and the Embassy of Sweden, underscored Sweden’s commitment to expanding its business footprint in India and highlighted the growing importance of Swedish companies in India.
A Brief History of the Sweden-India Bilateral Relationship
The Sweden-India bilateral relationship dates back to 1949, two years after Indian independence.
India and Sweden followed a non-alignment policy during the Cold War, though Sweden was unofficially inclined towards the US-led North Atlantic Treaty Organization (NATO).
In the 1990s, the relationship between New Delhi and Stockholm soured over the Bofors-India Howitzer deal, commonly known as the Bofors scandal.
With the bilateral ties having improved substantially in the 2000s, both countries witnessed frequent visits from top leaders.
Such events opened various hidden doors for economic cooperation and business opportunities for both countries.
One major turning point event in the Sweden-India relationship was the state visit to India by King Carl XVI Gustaf in 2005, by leading a team of technology delegations.
It was the third royal visit to India when Swedish King Gustaf and Queen Silvia met the Indian Prime Minister (PM) Narendra Modi for their 5-days state visit in December 2019.
The royal visit inaugurated a high-level dialogue on investment and innovation partnership between both countries, focusing on core business fields such as research, digital healthcare, climate change, renewable resources, future mobility, and shipping.
On different occasions, many top leaders of Sweden visited India.
The then Swedish PM Fredrik Reinfeldt and his successor Stefan Löfven also visited India to expand the bilateral relationship and promote Swedish-Indian cooperation.
Many Joint Action Plans (JAPs) and Joint Working Groups (JWGs) were established to work together on investment opportunities, R&D linkages, and technological transfers during frequent state visits between the two countries.
Business Opportunities for Swedish Companies in India
India’s growth as an investment powerhouse continues to attract global players, and companies entering India in 2026 will find a supportive and dynamic environment.
Additionally, the Sweden-India trade relationship has grown significantly over the years.
Worth USD 3 billion in 2016, the bilateral trade soared to USD 5.5 billion in 2022.
The number of Swedish companies in India has proliferated during this period.
One of the key reasons for the rising number of Swedish firms in India is the Indian government’s increasing efforts to attract foreign investment.
India’s FDI policy primarily aims to increase employment, industry productivity, and infrastructure.
Emerging as a significant global investment hub, India offers a key investment opportunity for Swedish companies.
To ensure an easy flow of foreign investment in the infrastructure sector, the Indian government initiated 100% FDI under the “automatic route” policy.
In November 2023, a leading Swedish defense and security company, SAAB, became the first foreign company to bag 100% FDI in India’s defense projects.
Currently, the Swedish business community in India has representatives across sectors like automotive, IT & telecom, retail & e-commerce, healthcare & pharmaceutical, renewable energy, and apparel.
To name a few, Swedish companies operating in India include Atlas Copco, AstraZeneca, Volvo Group, Electrolux, IKEA, H&M, SSAB, Autoliv, Spotify, and Truecaller.
Many of these companies have manufacturing, distribution, and service centers in India and have also been investing heavily in R&D and marketing & sales.
Considering India’s strong economy and significant growth rate, the Swedish Trade Commissioner in India, Cecilia Oskarsson, highlighted several investment opportunities for Swedish investors and businesses.
She highlighted significant investment opportunities across Indian sectors, including defense, aviation & space, IT and telecom, education, railways & ports, automotive, healthcare & pharmaceuticals, and renewable energy.
Several leaders from both countries agree that R&D collaboration, technology exchange, innovation, and investment are the key foundations for strengthening their bilateral business environment.
Availability of Indian Talent for Swedish Companies
India’s abundance of highly skilled talent and the comparatively lower cost of hiring remote professionals are two crucial factors that attract foreign businesses to establish a presence in the Indian market.
Also, rapid advancements in technology and infrastructure facilities, such as improved internet connectivity, AI transformation, data center & cloud computing services, and office/logistic facilities further boost the entry of foreign companies into India.
Such developments offer key market opportunities for Swedish companies as well.
According to a 2019 report by the Embassy of Sweden, Seven out of 10 Swedish companies in India preferred hiring talents within the area of their business operations.
Given the large number of employable youth in India, the Swedish government has shown interest in skill development programs there, as part of its commitment to expanding business opportunities for Swedish firms.
Also, the report highlighted the significant roles of Indian women professionals across industries and the need to empower women in organized jobs.
To build a sustainable business ecosystem, Swedish firms are focusing on public-private partnerships and encouraging women’s participation in industries as a vital workforce.
Indian talent represents a key workforce for Swedish start-up collaborations and SMBs, leveraging Swedish technologies and working together on innovative design solutions.
The rising R&D opportunities in India play a crucial role in strengthening ties between the business communities of New Delhi and Stockholm.
Conclusion
Sweden and India have established a longstanding bilateral relationship to work together towards modern technology, business collaboration and investment, and trade cooperation.
The rising popularity of Spotify and Truecaller illustrates the present India-Sweden modern technology cooperation.
In 2026, the growth of Swedish companies in India is set to accelerate, driven by a combination of government support, an abundant talent pool, and increasing bilateral cooperation.
As India continues to rise as a global investment hub, companies entering India in 2026 can look forward to a thriving business environment, supported by a robust framework for innovation, collaboration, and market expansion.
Also, India’s geopolitical importance provides extensive access to neighboring markets such as Sri Lanka, Bangladesh, Nepal, Bhutan, Pakistan, and the Maldives.
Business expansion in India can be a strategic investment opportunity to access several countries in East Asia as well.
The growing ties between Sweden and India serve as a reference point for further business collaboration with other Nordic countries, including Finland, Norway, and Denmark.
Highlighting the importance of Sweden-India relations, the Swedish Ambassador in India, Jan Thesleff, joined the celebrations of 100 years of SKF operation in Pune in 2023.
The iconic Swedish company, Ericsson, has been in India for more than 120 years.
About Remunance
Remunance is an Employer of Record (EOR) services provider in India, helping global companies hire, manage, and support full-time employees without setting up a local entity. We take care of HR, payroll, compliance, and benefits so businesses can focus on growth while building their teams in India with confidence.
Remunance enables businesses from UK, Australia, Canada, France, US, and the Middle East to recruit, hire, and manage workforce and benefits in India.
