Swedish small and medium enterprises (SMEs) are turning their attention to India, drawn by the country’s vast growth potential and the promise of the forthcoming India-EU Free Trade Agreement (FTA). The trade pact, once finalized, is expected to boost exports of Swedish goods and services while also opening new doors for collaborations with Indian businesses.

A delegation of leading Swedish SMEs recently visited India under the initiative of Business Sweden, the official agency promoting Swedish businesses globally. The discussions underscored Sweden’s growing interest in strengthening bilateral trade ties with India, which reached $7 billion in 2024.

While large Swedish corporations such as Volvo, Ericsson, and IKEA have long been established in India, the focus is now shifting to SMEs. With their niche expertise and innovative offerings, these companies see an opportunity to capture market share in high-growth sectors including industrial automation, healthcare, entertainment, renewable energy, and chemical process technology.

Highlighting this trend, Sofia Hogman, Trade Commissioner of Sweden to India, emphasized the potential of the Indian market and expressed confidence that the FTA will provide SMEs with a significant advantage in accessing and scaling within India.

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Key Highlights of Swedish SMEs in India

Aspect	Details
Growth Potential	Strong opportunity in India, driven by the upcoming India-EU FTA
Impact of FTA	Boost to exports and collaborations with Indian companies
Key Sectors	Industrial automation, healthcare, entertainment, renewable energy, chemical process technology
Bilateral Trade (2024)	$7 billion
Delegation Visit	Organized by Business Sweden, with leading SMEs engaging in discussions
Outlook for SMEs	Optimistic — SMEs expected to expand market access, following large Swedish corporations’ lead
Official Commentary	Sofia Hogman highlighted strong growth potential for SMEs post-FTA

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Conclusion

The expanding interest of Swedish SMEs in India reflects a broader shift toward diversified global trade partnerships. With the India-EU FTA on the horizon, Sweden’s innovative SMEs are poised to play a bigger role in India’s growth story, contributing to sectors that are critical to the country’s industrial modernization and sustainable future.