At a time when the global economy is being reshaped by geopolitical uncertainty, climate imperatives, and shifting supply chains, the conclusion of a Free Trade Agreement (FTA) between India and the European Union (EU) is both timely and consequential. It reflects a shared conviction that open, rules-based trade and trusted partnerships are essential to sustainable growth. For India and Sweden, longstanding partners bound by common values, innovation, and a commitment to sustainability, this defining moment is not only a vote of confidence in each other’s economies, but also an opportunity to move beyond deepened economic ties towards a deeper, more strategic partnership.
The EU-India FTA is more than a trade pact. It is a statement of intent that India and Europe will advance together, through a partnership that is transparent, resilient, inclusive and predictable. By providing greater market access and long-term certainty, the agreement has the potential to unlock investment, accelerate innovation and creativity, and strengthen value chains that benefit businesses and consumers on both sides.
India today is the world’s fourth-largest economy and one of the youngest nations globally, with nearly 65% of the population under the age of 35 and home to the fastest-growing IT talent pool globally. This unique combination of scale, demographics, and digital capability makes India an increasingly attractive destination for long-term investment, innovation, research and industrial partnerships.
Swedish companies have been present in India for over a century, contributing to manufacturing, mobility, clean energy, digitalisation, health care, and industrial innovation. Swedish innovation is made in India, and we want India to Make with Sweden. Nearly 7% of EU companies in India are Swedish, making Sweden the EU’s seventh largest exporter to India, while India is Sweden’s eighth largest export market outside the EU, highlighting both strong ties and the scale of opportunity that still lies ahead.
Sweden is one of the world’s most innovative countries and Europe’s leader in unicorns per capita. Its strong innovation ecosystem, spanning start-ups, research institutions and global companies makes Sweden a natural and valuable partner for India’s rapidly expanding innovation and entrepreneurship landscape.
The FTA will unlock new opportunities for European companies in India, particularly small and medium-sized enterprises by lowering entry barriers and simplifying procedures. For Sweden, it will encourage new firms to enter the Indian market, building on a strong base of around 300 Swedish companies that already employ 2.5 million people across India and their supply chains, a footprint set to grow further.
Equally, Indian companies, especially MSMEs, will gain improved access to European markets, enabling them to integrate more deeply into global value chains and scale their capabilities. This agreement will benefit all parties, particularly SMEs and MSMEs on both sides, expanding opportunities for innovation, business, jobs, and people-to-people ties between Europe and India.
From an industry perspective, the agreement holds scope for the automotive and mobility sector. As India advances toward cleaner, safer, and more efficient transportation, Swedish expertise in commercial vehicles, electrification, and other alternative energy pathways, coupled with road safety technologies aligns closely with India’s ambitions.
The FTA will strongly support the EU’s and India’s green transition, building on existing cooperation such as Leadership Group for Industry Transition (LeadIT), and by promoting low-carbon technologies, sustainable industry, and joint leadership on global climate action.
India-Sweden collaboration can drive progress in green technologies, clean energy, advanced manufacturing, mobility, and Industry 4.0. Time has come for Sweden to be a part of India’s remarkable growth journey towards Viksit Bharat 2047. Once the FTA is ratified, trade between India and Sweden is projected to double to over $14 billion within five years. But the true value of the agreement will lie not just in numbers, but in the quality of partnerships it enables and the trust it reinforces.
The EU-India FTA lays the foundation for a new era of partnership. By working together, India and Sweden can turn shared ambition into shared success. This is not just a trade agreement, but a blueprint for the next chapter of global growth, made with Sweden.
Jan Thesleff is Sweden’s ambassador to India and Kamal Bali is chairperson, Swedish Chamber of Commerce and president & MD, Volvo Group. The views expressed are personal
