India and Sweden are preparing for a significant expansion in their economic relationship, with Swedish investments in India expected to rise sharply in the coming years. Business Sweden views India as a strategic partner, driven by the country’s rapid economic growth and Sweden’s strengths in sustainability and green technology. This alignment is creating fresh opportunities for collaboration across industries, particularly as global demand increases for cleaner and more efficient solutions.

Over the past six years, Swedish companies have invested around $2.5 billion in India, supporting sectors ranging from manufacturing to digital services. Major players such as Volvo, Ericsson, and IKEA are scaling up their presence, directly employing more than 220,000 people and indirectly supporting millions through local supply chains. Beyond capital inflows, this engagement is helping build long-term ecosystems where innovation and sustainability go hand in hand, reflected in initiatives like IKEA’s focus on environmentally responsible sourcing within India’s vast consumer market.

Sustainability sits at the heart of this partnership. With India aiming for net-zero emissions by 2070 and Sweden consistently ranking among global leaders in innovation, collaboration in green technology is gaining momentum. Joint initiatives launched at platforms such as the India-Sweden Sustainability Day include projects in hydrogen-based steelmaking, artificial intelligence–driven emissions reduction, and low-carbon cement produced from recycled materials. Today, more than 280 Swedish companies operate in India, combining Sweden’s collaborative “Triple Helix” approach—linking government, industry, and academia—with India’s expanding manufacturing capabilities.

Swedish investments in India could potentially double within five years, particularly if an India–EU free trade agreement is finalized, easing market access for Swedish firms. At the same time, Indian companies are increasing their footprint in Sweden, with foreign direct investment from India rising by 191 percent over the past five years in areas such as electric vehicles, renewable energy, and digital technology. This two-way flow of capital and expertise highlights a partnership built on shared ambitions, blending Nordic efficiency with Indian scale to support a more sustainable global economy.