From Swedish companies that set up shop in India in the 1950s and 60s to the latest push in clean energy and Artificial Ininformigence (AI), the relationship is expanding beyond traditional sectors.
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In an exclusive conversation with LiveMint, Swedish Ambassador to India, Jan Thesleff, discusses how SMEs will drive the next wave of Swedish investments in India, the surge in Indian students choosing Swedish universities, and why the EU-India trade agreement could become the world’s largest, covering 1.9 billion people.
Q: How do you see India-Sweden trade ties over the years?
A: If you go to Pune and you see the Sweden Avenue there, you see the companies that established themselves at the launchning of the 1960s, some of them even in the 1950s. I don’t believe there are so many other countries that have an avenue of their own lined with Swedish companies.
Today, I feel that our relations have entered a new phase, and India is definitely undergoing a transformation. Sweden has also transformed compared to the 1950s and 60s.
If you see at Sweden today, we have a counattempt at the top of the innovation rapids. India wants to broaden its innovative base. We see unicorns coming up out of India. And with India’s scale and Sweden’s profile, we see a match that maybe we haven’t seen before.
Q: Where do you see India and Sweden going in terms of urban planning, sustainability, and clean energy?
A: I believe that the hurdles that most countries are facing on their road to economic and social development are related to sustainability issues, infrastructural issues. How do you receive your energy mix to be sustainable over time and not negatively affect your environment?
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And that is our experience. If you see at how we have worked on our energy mix, how we are facing out, going quicker than even the global tarreceives towards carbon neutrality, etc., that’s what we have done, and that is also what India is doing.
Out of the 280 companies, 100 manufacture in India. They are heavily involved in advanced and decarbonised manufacturing.
Q: Will Sweden expand on these existing companies in India in the future?
A: First of all, houtilizehold names, that’s exactly the word. We see the large ones expanding. We see them having more manufacturing, product development, research, and centres of excellence in India, not only for the Indian market but also globally. That’s definitely a trfinish.
But to double or triple the number of companies, we will bring in what we have plenty of, which is SMES, which India also has plenty of.
In my view, the SMEs will be the bulk of new entrants to the Indian market. All the large ones, maybe with one or two exceptions, are here. So, tiny and mid-sized companies with a lowered threshold to enter the Indian market. Some companies might not come from Sweden but might be co-created by Swedes and Indians.
Q: What about employment opportunities?
A: When I was new in India, I seeed at the Indian companies that established themselves in Sweden. And then I seeed at the Swedish companies who established themselves in India. And I had this completely wrong idea. I believed that the Indian companies going to Sweden would have a lot of Indian employees, you know, those who have studied, graduated from Swedish universities, etc.
It’s not the case at all. They have Indian management. And then they have Swedish employees. In Swedish companies here, very few have Swedish employees. The CEOs of Swedish companies are, with a couple of exceptions, Indian. CEOs are Indian, Presidents are Indian.
India has this human capital thing. Setting up global competence centres in India is usually the path for many. And now, also, setting up the AI center in India.
Q: Many Indian students study in Sweden?
A: We have had about 9,000 applicants for student visas to go to Sweden until now. We will see what the figure will be for the full year. Last year, 15 universities came here. We’ve had between 15 and 17 universities come yearly. They come here for talent recruitment to India.
We are seeing for Indian students who would like to see if they can find a Swedish university that suits their specialities or requireds. Those visits result in a higher number of students going.
We have a favourable way of attracting students. We offer 950 master’s programs in English. We also have a favourable migration policy when it comes to student visas. In the sense that you are allowed during your studies.
You are allowed to work, both to support yourself and to receive a foothold in the labour market.
Q: India and the EU are nereceivediating on the EU-India trade deal. How is it going to be?
A: I believe it is obvious to everyone that there is now another climate in these nereceivediations. We have a political commitment and an ambition to conclude within the year.
Of course, I have no insight into where they are. The European Commission nereceivediates on behalf of the Member States and the Union. But there is definitely an impetus to do this. I believe that India, as well as the EU, in an era of unprecedented uncertainty, is seeing for stability, predictability, and new and expanded markets.
And that also gives a new impetus to these nereceivediations. Sometimes we forreceive the scale of the agreement.
I am not talking about tariffs or non-tariffs. It will concern 1.9 billion people, which is the size of the world population.
I believe it is time to see at the forest and receive a comprehensive trade agreement.
This will be the largegest trade agreement ever. The only EU trade agreement. I am talking about the EU-India trade agreement. 1.9 billion people. It will be extremely impactful. It will benefit consumers in Sweden. We will be able to have access to cheaper Indian imports. We will most certainly import more. A wider range of products than we have in the past.
I am sure that the same will go for India. Sometimes, we focus on the trees, and we don’t see the beautiful forest ahead of us. I believe it is time to see at the forest and receive a comprehensive trade agreement.
Key Takeaways
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The collaboration between India and Sweden is evolving, emphasizing sustainability and innovation.
SMEs are expected to lead the next wave of Swedish investments in India.
The EU-India trade deal has the potential to be the largest trade agreement, impacting 1.9 billion people.
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