India’s economy is currently the fifth largest in the world, but is on track to surpass that of Japan and Germany by 2027. As Sweden's third-largest trading partner in Asia, increasing bilateral trade has made India a rising key market and investment destination for Swedish businesses.
This report is based on a survey of Swedish companies operating in India, carried out in February and March of 2025. The overall outlook is strongly optimistic, with 77 per cent of respondents having a positive view of the business climate in India and a significant number planning to increase their investments.
The country has fared better than most others against global economic headwinds in recent years. India’s government is actively fostering efforts to transform its service-dependent economy to a more robust business environment with a digitally enabled and sustainable manufacturing ecosystem. This particularly highlights Sweden and India’s shared interests in areas such as smart manufacturing, green technology, advanced healthcare, fintech, and more.
The ‘Swedish brand’ continues to be important for any company establishing and growing a presence in the Indian market. Respondents report that businesses connected with Sweden are associated with developing quality-compliant products – no matter the company’s industry, size, or length of time in India.
Although it’s the third-largest CO2 emitter globally, India is especially vulnerable to climate change and is working towards reducing its emissions and eventually reaching climate neutrality. Its key areas of opportunity for sustainability include renewable energy, circularity, green manufacturing, and sustainably sourced products.
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ABOUT THE SURVEY
A well-established tool for understanding the current mode of global business, identifying growth opportunities, and highlighting international challenges for Swedish companies, the Business Climate Surveys are conducted every year in markets around the world. This year’s Business Climate Survey for India was spearheaded by Business Sweden and the Swedish Chamber of Commerce India, and featured the participation of more than 200 Swedish companies operating in India.
Team Sweden in India is grateful to all the participants who have taken the time to share their perspectives and insights. We hope the findings from this survey will help gain a better understanding of the factors that influence economic performance and innovation and be used to build a stronger, more adaptive, and prosperous business environment.
