India-Sweden Relations
Political relations
The ties between India and Sweden are close and friendly, based on a shared history of common perceptions on issues related to democracy, social and economic development, and disarmament. There have been frequent high level contacts between the two countries beginning with the 1957 visit of Prime Minister Jawaharlal Nehru to Sweden. Since then a number of bilateral Ministerial visits have taken place focusing on specific areas of cooperation. Recently Swedish Prime Minister Fredrik Reinfeldt visited India in November, 2009 for India-EU Summit and bilateral talks. Hon’ble Smt. Meira Kumar, Speaker, Lok Sabha visited Sweden on June 13- 16, 2011. Hon’ble Sh. Sushilkumar Shinde, Minister of Power visited Sweden on June 19-23, 2011. Sh. Kapil Sibal, Hon’ble Minister for Communications & Information Technology and HRD visited Sweden on 21-24 September, 2011. Mr. Carl Bildt, Swedish Foreign Minister visited India in October, 2011 for Nobel Week celebrations. Mr. Hakan Juholt, leader of Sweden’s Social Democratic party visited India on 31 st October- 4 th November, 2011.
2. The first ever India Friendship Group was set up in Swedish Parliament in February 2006. An India- Sweden Friendship Group has also been set up in Parliament of India. The bilateral Foreign Office consultations provide the requisite forum for exchange of views on bilateral and global issues.
3. Commensurate with desire for enhanced relations, a number of institutional Agreements/arrangements have been put in place for promoting trade, investments and other relations including: (i) Agreement for duty free entry and defrayment of inland transport charges for supplies and equipments gifted to voluntary agencies in India, signed in 1966. Avoidance of Double Taxation Agreement, notified on 17 December 1997; (ii) Bilateral Investment Protection Agreement (BIPA), signed on July 4, 2000; (iii) Science & Technology Agreement signed in December, 2005; (iv) MoU between the Sweden India Business Council (SIBC) and the Federation of Indian Chambers of Commerce & Industry (FICCI) signed in June, 2005; (v) Indo- Swedish Joint Commission for Economic, Industrial, Technical and Scientific Cooperation; (vi) MoU on Air Services Agreement between India and the Scandinavian countries i.e., Sweden, Denmark and Norway signed on November 30, 2006; (vii) Memorandum of Understanding signed between Central Pulp and Paper Research Institute (CPPRI) and the Swedish Pulp and Paper Research Institute (STFI); (viii) MoU for cooperation in the field of Healthcare and Public Health signed in February 2009; (ix) MoU between the Karolinska Institute and the Indian Council of Medical Research signed in June, 2009; (x) MoU on Defence cooperation signed in November, 2009; (xi) MoU on cooperation on Environment signed in November, 2009; (xii) An MoU between India and Sweden in the field of Renewable Energy signed in New Delhi on 19 th April, 2010; (xiii) An MoU was signed between Indian Council of Cultural Relations (ICCR) and Lund University, Sweden on establishing a new Chair on Indian Studies at Lund University, Sweden on 22 nd June, 2010; (xiv) A Memorandum of Intent was signed on May 19 th , 2011 between Swedish Institute for Communicable Disease Control and the National Centre for Disease Control (NCDC), Ministry of Health and Family Welfare, India. The MoI is on bilateral cooperation in the area of antibiotics. (xv) The Embassy and the University of Gothenberg signed an Agreement on 20 th December, 2011 to establish a Chair on Indian Studies at the University for the year 2012-2015.
Economic & Commercial relations
4. Economic interests have emerged as the driver of the relationship in the recent years with the bilateral trade at US$ 2235 million in 2010-11 and two way investments. Areas identified for cooperation are IT, Telecommunications, Biotechnology, Environmental technologies and automotive industry. Trade-wise, the main Swedish exports to India are in the areas of pharmaceuticals, paper & pulp products, chemicals, engineering products and telecom equipment. The main items of Indian exports are chemical products, food products, and semi manufactured and manufactured goods.
5. A table on bilateral trade data is as follows:
Years 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
India’s 241.80 326.39 387.70 544.19 566.69 476.63 615.68 Exports to Sweden India’s 937.33 1172.20 1932.46 2128.11 1952.50 1590.14 1619.38 Imports from Sweden In US$ Million Source: DGFT, India
6. India has emerged as Sweden’s 19th largest export market and third largest trade partner after China and Japan in Asia. Sweden is the 12th largest FDI investor in India according to Sweden Investment Agency (SIA) figures with investments of just under US$ 1 billion which does not reflect profits which have been ploughed back by Swedish MNCs.
7. Sweden with its large number of MNCs has had a very long presence in India. Swedish Match had established its facility (WIMCO) as early as in 1926. Since then other Swedish companies like Ericsson, SKF, Atlas Copco, DeLaval, Volvo, ABB, Astra Zeneca, etc. have expanded their operations in India. At present there are over 160 Swedish joint ventures wholly owned subsidiaries in India. Recognising the booming trade and investment opportunities in India, the Swedish Trade Council, already having its offices in Delhi and Bangalore, opened its third office in Mumbai in March 2008. The agency Invest Sweden has also opened its office in Delhi in September 2009. A Swedish- India Business Council has been established to enhance trade and investment cooperation. It has a membership of over 120 Swedish companies including SMEs.
8. There are over 40 Indian IT companies in Sweden and their cumulative exports are estimated at US $ 600 million. Indian pharma and biotech companies like Dr. Reddys, Biocon, Kemwell and Ranbaxy have formed collaborative relations in Sweden. Bharat Forge, acquired the Swedish firm Imatra Kilsta 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 for a consideration of USD 31 million. In April, 2011 Aditya Birla Group acquired the Swedish speciality pulp maker and bio refinery company Domsjo Fabriker for SEK 2.1 billion. In May, 2011 India’s Crompton Greaves signed an agreement to buy Emotron which develops electric motors in Helsingborg. There are over 70 Indian companies including IT companies currently present in Sweden.
Cultural relations
9. Despite the absence of the Cultural Exchange Programme between India and Sweden, the Embassy in coordination with ICCR and local NRIs has sponsored cultural performances several times in Sweden during the last few years. Every year ICCR offers two scholarships to Swedish nationals for studying dance and music. This has been utilised by the Swedish side. Under the EU’s Erasmus Mundus Scholarship and Academic Cooperation programme, a large number of Indian students and Postdoctoral researchers have joined Lund University and Karolinska Institute in Sweden. There are nearly 14,000 Indian origin persons and 4500 Indian passport holders in Sweden.
**** January 2012