INDIA-SWEDEN RELATIONS

Introduction
Diplomatic ties between India and Sweden were established in 1949. The
two countries enjoy cordial relationship and excellent cooperation in regional
and international fora. Sweden supports India’s membership of the expanded
United Nations Security Council (UNSC). Sweden supported India in its
membership of the Missile Technology Control Regime (MTCR) and has
extended full support in India’s bid for its pending membership of the Nuclear
Suppliers Group (NSG). The two countries have been supporting each other on
reciprocity for their non-permanent memberships in the UNSC and various
positions in different organs of the UN and other multilateral fora. Mutual
economic interests have emerged as the driving force in the relationship.

Political Relations
 High level contact between the two countries goes back to 1957 when
Prime Minister Jawaharlal Nehru visited Sweden. Prime Minister Indira Gandhi
visited Sweden for attending the United Nations Conference on the Human
Environment in Stockholm in 1972. Prime Minister Rajiv Gandhi visited Sweden
in March 1986 and January 1988. The first-ever State Visit by the President of
India, Shri Pranab Mukherjee, was in 2015. This was followed by the visit of
Swedish Prime Minister Stefan Löfven to India in 2016.

3. The historic visit of Prime Minister Shri Narendra Modi to Sweden

on 16-17 April 2018 has taken the bilateral relationship to the next stage with
further strengthening of overall cooperation between India and Sweden. This
was a visit to Sweden by Indian Prime Minister after nearly three decades.
Prime Minister had an audience with His Majesty King Carl XVI Gustaf in
addition to bilateral meeting with the Swedish PM Stefan Löfven. A Joint
Declaration on India-Sweden Innovation Partnership for a Sustainable Future
was signed by both the sides and a Joint Action Plan was adopted. Both Prime
Ministers participated in a Round-table meeting with about 30 CEOs of leading
Swedish enterprises and addressed the CEOs. During the visit, India and
Sweden also hosted the first India-Nordic Summit, entitled ‘India-Nordic
Summit : Shared Values, Mutual Prosperity’ which was attended by all other
Nordic Prime Ministers, PM Lars Lokke Rasmussen of Denmark, PM Juha Sipila of
Finland, PM Katrin Jakobsdottir of Iceland and PM Erna Solberg of Norway.

4. The landmark State Visit to Sweden by the President of India in

2015 has taken the relationship to new heights. He was accompanied by Shri
Hansraj Gangaram Ahir, Minister of State for Chemicals and Fertilizers; Shri
Ghulam Nabi Azad, MP, Rajya Sabha; Shri Ashwani Kumar, MP, Lok Sabha;
senior Government officials; several Vice Chancellors and Directors of leading
Indian Universities; and over 60 business leaders from India.

5. The momentum which the Presidential visit imparted to India-Sweden

relations was maintained by the visit of Swedish Prime Minister Stefan
Löfven to India in February 2016 for the ‘Make in India Week’ in Mumbai. He
was accompanied by one of the largest Swedish high level official and business
delegations. He met Prime Minister Narendra Modi on 13 February. The Joint
Statement issued after the meeting laid down the vision for all round future
cooperation. The statement identified defence, infrastructure, urban
development, education, S&T, environment, health and space as key sectors
for strengthening bilateral partnership. The two Prime Ministers endorsed the
creation of an India-Sweden Business Leaders Round Table, comprising top
business leaders from both countries, to facilitate two-way trade and
investments. A Memorandum of Understanding for cooperation in Railways was
signed on 15 February 2016.

6. Earlier VVIP visits from Sweden included a State visit by His Majesty
King Carl XVI Gustaf and Queen Silvia of Sweden in 1993. Thereafter, the
King led a Technology Mission to India in November 2005. Prime Minister Göran
Persson paid a working visit to India in January 2004 and Prime Minister Fredrik
Reinfeldt visited India for the India-EU Summit and bilateral talks in November
2009.

7. The most recent Ministerial visits from India included that of Minister
for Jal Shakti Shri Gajendra Singh Shekhawat from 28-31 August 2019 to
participate in the Stockholm International Water Week (SIWI). The Speaker of
the Bihar Legislative Assembly visited Stockholm from 13-16 September 2019
on a pre-conference study tour in connection with Commonwealth
Parliamentary Conference being held at Kampala, Uganda. Minister for Defence
Smt.Nirmala Sitharaman visited Stockholm from 13-14 February 2019. She met
Prime Minister Stefan Löfven and held bilateral discussions with Defence
Minister Peter Hultqvist. A General Security Agreement between India and
Sweden was also signed by the two Ministers.

8. Other recent Ministerial visits from India to Sweden include visit of

Minister for Science & Technology, Environment, Forest and Climate Change,
and Earth Sciences Dr. Harsh Vardhan in May 2018, visit of a 11-member high-
level delegation from Maharashtra Legislature led by Hon’ble Shri Ramraje Naik
Nimbalkar, Chairman, Maharashtra Legislative Council, which included Hon’ble
Shri Haribhau Bagade, Speaker, Maharashtra Legislative Council in April 2018,
visit of Minister of State for External Affairs Mr. M.J. Akbar in September 2017,
visit of Minister of Road Transport, Highways and Shipping, Shri Nitin Gadkari in
June 2017, visit of Minister of Commerce & Industry Suresh Prabhu from 11-14
October 2017 for the mega ‘Make in India: Sweden 2017’ event in Stockholm
from 12-13 October 2017 and held talks with the Swedish Prime Minister Stefan
Löfven. The Indian States of Maharashtra, led by Chief Minister Devendra
Fadnavis; Karnataka; Manipur; Uttar Pradesh; and Andhra Pradesh were
nd
represented at the event. They also participated in the 2 meeting of the
India-Sweden Business Leaders Round Table in Stockholm on 11 October 2017,
which was inaugurated by the Swedish Prime Minister. Earlier, other high level
visits from India to Sweden included – Minister of State for External Affairs M.J.
Akbar from 11-13 September 2017, who, among others, held talks with the
Speaker of Riksdag and the Minister for Foreign Affairs; Minister of Road
Transport, Highways and Shipping Nitin Gadkari from 14-17 June 2017; Minister
of State for Parliamentary Affairs and Agriculture and Farmers Welfare
Surenderjeet Singh Ahluwalia, who led a 10-member Parliamentary Delegation
from 28-31 May 2017; Minister of State for Power, Coal, Mines, and New &
Renewable Energy Piyush Goyal from 1-3 November 2016; Minister of
Communication and Information Technology Ravi Shankar Prasad from 15-18
May 2016; Chief of Air Staff and the Chairman of Chiefs of Staff Committee Air
Chief Marshal Arup Raha from 7-11 June 2016; Minister for Women & Child
Development Maneka Gandhi in May 2015; Chief Minister of Maharashtra
Devendra Fadnavis in April 2015; Governor of RBI Dr. Raghu Ram Rajan in June
2015; Comptroller and Auditor General of India Shashi Kant Sharma in
September 2015; Minister of Health, Home, Power, PWD and Industries of Delhi
Satyendar Kumar Jain in October 2015; Chief Secretary of Telangana Dr. Rajiv
Sharma in October 2015; Uttar Pradesh Government MOS for Transport Yasar
Shah in August 2016; Secretary from the Ministry of Drinking Water and
Sanitation Parameswaran Iyer in August 2016; Secretary from the Ministry of
Science and Technology Dr. Vijay Raghavan in August 2016; and Additional
Secretary N. Sivasailam from DoT in October 2016.

9. The important visits from Sweden to India included – Minister for

Health and Social Affairs Ms. Lena Hallengren in February 2019; Minister for
Rural Affairs Sven-Erik Buch in November 2017; Minister for Upper Secondary
School and Adult Education and Training Anna Ekström from 1-3 November
2017; State Secretary to Swedish Defence Minister Jan Salestrand in December
2017; State Secretary to the Swedish PM for EU and International Affairs Hans
Dahlgren from 3-4 October 2017; Minister for Foreign Trade and EU Affairs Ann
th
Linde who visited India for the 18 Session of the Indo-Swedish Joint
Commission for Economic, Industrial and Scientific Cooperation, which was held
in New Delhi on 17 May 2017; Justice and Migration Minister Morgan Johansson
from 12-14 May 2016; Swedish Policy Coordination and Energy Minister Ibrahim
Baylan from 4-8 October 2016; Minister of Enterprise and Innovation Michael
Damberg in November 2016; Minister for Upper Secondary and Adult Education
and Training Anna Ekström from 10-13 January 2017; Defence Minister Peter
Hultqvist in June 2015; State

Secretary in Swedish Prime Minister’s Office Hans Dahlgren in October 2015;

Minister for Housing, Urban Development and Information Technology Mehmet
Kaplan from 13-18 October 2015; and a six-member delegation from the India
Friendship Group in Swedish Parliament in September 2013.

10. Several other important high-level contacts helped cement bilateral ties.
Prime Minister Narendra Modi and Swedish Prime Minister Stefan
Löfven met in New York on 25 September 2015 on the sidelines of the UN
General Assembly. Minister of State for External Affairs General (Dr) V.K.
Singh (Retd) met Swedish Foreign Minister Margot Wallström in
Luxembourg in November 2015 on the sidelines of ASEM Foreign Ministers
Meeting.

11. A number of bilateral Institutional Dialogue Mechanisms and

Agreements are in place to foster cooperation in different areas. These
include Avoidance of Double Taxation Agreement, Bilateral Investment
Protection Agreement, MOUs for Cooperation in the field of Healthcare and
Public Health, Defence, Environment, Science and Technology, Health, and
Renewable Energy. Regular meetings are held to review and foster cooperation
in these areas. During the Presidential visit in 2015, six intergovernmental
Agreements/MOUs were signed, which pertained to Sustainable Urban
Development; Micro, Small and Medium Enterprises; Visa Exemption for
Diplomatic Passports; Polar and Ocean Research; Ageing and Health; and
Pharmaceutical products; in addition to another fifteen agreements signed
between educational institutions of the two countries.

12. The leading institutional mechanism of inter-Governmental dialogue

between India and Sweden is the Indo-Swedish Joint Commission for Economic,
Industrial and Scientific Cooperation at the level of the Ministers of Commerce
and Industry in India and the Swedish Minister for Foreign Trade and EU Affairs.
th
The last 18 Session was held in New Delhi on 17 May 2017. An MoU for
Defence Cooperation was signed in 2009, under which a Joint Working Group
th
was established. The 6 round of the JWG on Defence was last held in
Stockholm in January 2018. The first India-Sweden Joint Working Group
meeting under the MoU on Sustainable Urban Development was held in New
Delhi from 14-17 October 2015. There is a mechanism for regular dialogue
between the two Foreign Ministries through Foreign Office Consultations. The
fifth round was held in Stockholm on 26 April 2013. The sixth round was held
again in Stockholm on June 2017 for which Secretary (West), Smt. Ruchi
Ghanashyam, visited Sweden. The India-Sweden Business Leaders Round Table
(ISBLRT), created in February 2016 with CII and Sweden-India Business Council
(SIBC) as its coordinating agencies, held its first meeting in New Delhi on 9
November 2016 and second meeting in Stockholm on 11 October 2017.
Economic and Commercial relations
13. During the visit of the President of India to Sweden in 2015, both sides
had agreed to reach the ambitious total trade target of US $5 billion by 2018.
Though the bilateral trade fell to US $1.9 billion in 2016-17, as compared to
about US $2.17 billion in 2015-16, Swedish investments and other economic
activities in India were on the rise. According to available statistics, the main
items of Indian exports to Sweden were articles of apparael, clothing
accessories; textiles yarn, fabrics, made-ups; manufactures of metals; road
vehicles; general industrial machinery and equipment. The main items of
Indian imports from Sweden were pulp and waste paper; road vehicles;
paper and paper board, articles thereof; general industrial machinery and
equipment; iron and steel; machinery for particular industry; electrical
machines, apparatus and appliances; miscellaneous manufactured articles;
and power generating machinery and equipment. The major items of trade
between the two countries remained unchanged.

14. The trade figures for the last few years are tabulated below:

Year 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

India's 733.40 740.50 683.62 710.00 771.50 792.23

Exports
to
Sweden
India's 1679.50 1748.00 1484.89 1160.00 1464.47 1,326.85
Imports
from
Sweden
Total 2412.90 2488.50 2168.51 1870.00 2235.97 2,119.08
Source: Department of Commerce, India. Figures are in million US dollars and year refers to financial year from April to March

15. Sweden has a long history of investments in India. Many of the major
Swedish companies – such as Ericsson, Swedish Match (WIMCO), SKF and
ASEA (later to become ABB) – entered India even before it became
independent. Since then numerous other Swedish companies – like Atlas
Copco, Sandvik, Alfa Laval, Volvo, Astra Zeneca and SAAB – have invested in
India. Other leading Swedish MNCs – namely, transport solution provider
Scania, the hygiene and forest products company SCA and retail giants IKEA
and H&M – are among the more recent entrants. As per October 2017 data,
there are over 170 Swedish joint ventures and wholly owned subsidiaries in
India. Sweden is the 20th largest foreign investor in India with cumulative
investment of US $8.51 billion between January 2003 and January 2017. The
low figures as compared to actual investments are for the reason that the data,
available only from the year 2003-onwards, do not reflect the prior Swedish
investments in India or investments of MNCs through third countries. The
existing Swedish MNCs are now expanding not only in manufacturing but also
increasingly on offshore IT operations and R&D in India. They are growing in
numbers. This part of investments by existing Swedish companies is
apparently not included either. Sectors that have received the largest shares of
Swedish investments in India are Automobile Industry with US $362.20 million
(33%), Industrial Machinery with US $162.09 million (15%), Miscellaneous
Mechanical & Engineering Industries with US $115.67 million (10%), Electrical
Equipment with US $80.99 million (7%) and Metallurgical Industries with US
$55.02 million (5%). The top FDI equity inflows have come from the following
Swedish companies – Volvo; ABB; Atlas Copco, Ericsson; Alfa Laval; SAAB;
Autoliv; Sapa (Aluminium solutions), Astra Pharmaceuticals; Electrolux; Quinn
Hotels Sweden; Scania; Perstorp; H&M; IKEA; Recipharm; and Securitas.

16. Over the last decade, Indian investment in Sweden has also
increased. There are over 70 Indian companies including IT companies
currently present in Sweden. There are over 40 Indian IT companies in Sweden.
Indian pharma and biotech companies like Dr. Reddys, Biocon, Kemwell and
Cadila Pharma have formed collaborative relations in Sweden. Bharat Forge,
acquired the Swedish firm ImatraKilsta AB in 2005 with a workforce of over 500
employees. In 2006, Wipro acquired 100% equity of the Sweden-based
Hydrauto Group AB which produces hydraulic cylinders. In May, 2011 India’s
Crompton Greaves acquired Emotron which develops electric motors in
Helsingborg. In April, 2011 Aditya Birla Group acquired the Swedish specialty
pulp maker and bio refinery company Domsjo Fabriker for SEK 2.1 billion. In
July, 2012, Indian Telecom co. Altruist Technologies has purchased Swedish
Telecom company Teligent. In October 2015, Volvo Trucks had reached an
agreement to divest its external IT operations to HCL Technology for a cash
payment of US $138 million. According to rough estimates the cumulative
Indian investment in Sweden is currently in the range of US$ 700-800 million.

17. There is significant potential for enhancing bilateral collaboration

in key areas like green technologies, renewable energy, smart infrastructure,
healthcare and defence.

18. Trade in services is large and growing, especially in areas of IT, business
services, travel and transportation. According to the International Trade Centre
figures, in 2016, the total bilateral trade in service was worth US $1.23
billion, which included Indian service exports of US $767 million to Sweden and
Swedish service exports of US $458 million to India. With growing technological
advances in IT sector, Swedish demand for Indian IT professionals will naturally
grow.

Cultural and Educational Relations

19. Indian music, dance, art, literature, films and cuisine are widely
appreciated in Sweden. In the absence of a Cultural Exchange Agreement
between the two countries, cultural ties are promoted mainly by local
associations and by the Embassy with the support of the Indian Council of
Cultural Relations.

20. The establishment of Chairs on India Studies from time to time at major
Swedish Universities – Lund (now discontinued), Gothenburg and Uppsala –
have given an impetus to the academic interest in India. Several Swedish
universities have established links with Indian educational institutions and have
regularly been sending students to India for different programmes. Many Indian
students study in Swedish Universities. However, the number has declined
after fees were introduced for non-EU foreign students in 2011.

21. A prominent annual cultural event, Namaste Stockholm Festival, was

started by the Embassy of India in collaboration with the India Unlimited. The
first Festival was held in 2015. In 2019, Namaste Stockholm Festival was
organized on 25 May, between 16000-20000 visitors were dazzled by these
wonderful performances of dance, music, fashion and culture from India. Day
started with Yoga and ended with Bollywood dhamaka spiced in between with
amazing foods of India. In 2017, India’s Independence Day celebrations
became part of a larger Stockholm Cultural Festival of which India was a central
theme, a first for a non-European country. Independence Day celebrations were
followed by Namaste Stockholm, a day-long Indian cultural event, to mark
India@70. The India theme at the Stockholm Cultural Festival featured a
feast of performing arts events (including maestro Zakir Hussain,
Bharatanatyam artist Geeta Chandran, Kathak artist Shivani Sethia, Bollywood
Musical, Barmer Boys, etc.) and an Indian Street Bazaar with celebrated
craftsmen and weavers with the support from the Indian Council of Cultural
Relations, Ministry of Culture, HHEC & several Indian associations in Sweden. A
direct Air India flight between New Delhi and Stockholm was also launched on
16 August 2017.

22. An annual Sweden-India Nobel Memorial Week is held every year in India
under which a number of events are held. In 2016, it was held from 1-7 October
under the theme of ‘Sweden Makes in India’. Swedish Minister for Policy
Coordination and Energy Ibrahim Baylan visited India to participate in the
Week. This year it was Swedish Minister for Upper Secondary School and Adult
Education and Training Anna Ekström who visited India for this purpose in
November 2017.

23. In 2013, Embassy of India, along with several partners, created an ‘India
Unlimited’ platform to promote India-Sweden cultural and economic ties
through series of events which are held annually highlighting current and future
partnerships between the two countries and showcasing Indian culture, cuisine,
business opportunities, science and innovation among others and to provide an
interactive platform for stakeholders from both the countries. Diwali Mingle
networking event organized by the India Unlimited on November 12, 2018 in
association with the Embassy of India and SIBC. Ambassador Monika Kapil
Mohta inaugurated the third Smart City Smart Village Hackathon organized by
India Unlimited in association with the Embassy of India on September 6, 2018
in Stockholm for finding innovative ideas and solutions for real life issues with a
special focus on Kerala based on the Circular Economy Model and the latest
technological development.

Indian Community
24. As per latest statistics, there are about 25,720 members of Indian
Diaspora in Sweden. This includes about 15,250 Indian passport holders and
about 10,370 foreigners of Indian origin. Most of them are skilled professionals
in IT companies, professors, research scholars in universities and other
institutes.

25. The number of Indian students has increased in Sweden in recent

years. At present, more than two thousand Indian students are studying in
different Swedish institutions. The main problem that the Indian students are
facing in Sweden is that their student visas are not coterminous with the
duration of courses they have joined. Every year, and in some cases every
six months, students would go for the same time-consuming exercise for
extension of their visas that had gone through at the time of grant of their first
visa. In many cases, visa extension is rejected on flimsy grounds and students
are asked to go back to India as they were unable to submit their Master
Programme thesis due to delays from their supervisors only. Such a situation
hugely burdens students who usually come for studies after obtaining a loan
from bank.

26. India has begun to dominate work migration into Sweden from outside
EU. Till December 2017, 16,891 work permits were granted to Indians. The
number of Indians coming to Sweden for business and leisure has also gone up
significantly in recent years. The growth is expected to continue, now with the
establishment of direct air-link between the two countries. Persons coming on
work visa or permit face inordinate delays in obtaining visa especially for
their dependent family members. The process for extension of their visa is also
lengthy and cumbersome and there have been cases where extension is
rejected on flimsy grounds. In almost all the cases of rejection, persons are
asked to appeal against the decision of the Migration Board and hire a lawyer
but in almost 99 per cent cases, the verdict favours Migration Board decision.
_________________

23 September 2019

Useful online resources:

 Mission’s Website: www.indianembassy.se

 Facebook: https://www.facebook.com/EmbassyofIndiaSweden

 Twitter: https://twitter.com/indiainsweden

 YouTube: https://www.youtube.com/user/eoistockholmsweden

 Newsletter: https://issuu.com/eoistockholm

 Government offices of Sweden: http://www.government.se

 Swedish Ministry of Foreign Affairs: http://www.government.se/government-

of-sweden/ministry-for-foreign-affairs

 Swedish Statistics Agency: http://www.scb.se/en

 Sweden Abroad: http://www.swedenabroad.com

 Swedish Armed Forces: http://www.forsvarsmakten.se/en/

 Global India Episode on Sweden: https://www.youtube.com/watch?v=b1fPppfAja8

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