New Delhi, Mar 14 (KNN) With Swedish companies seeking to shift their focus away from China in the Asian markets, India has risen as a favoured destination for Swedish business investments, said Sweden’s ambassador to India, Jan Thesleff.

“While numerous Swedish companies maintain operations in China, they exhibit a desire to diversify their presence across Asia. India emerges as one of the favoured choices, with Swedish firms establishing manufacturing facilities and expanding their business activities in the country,” Thesleff told Mint.

Highlighting findings from Sweden’s annual business climate survey, Thesleff points to India as the market with the most positive sentiment among Swedish companies.

The 2023 Global Business Climate Survey by Business Sweden reveals an 86 per cent favourable perception of India's business climate, a significant uptick from previous years.

Invest India reports substantial foreign direct investment (FDI) inflows from Sweden, totalling USD 2.38 billion between 2000 and 2023.

Key sectors attracting investments include automobiles, industrial machinery, electrical equipment, and metallurgy.

Sweden's defence ties with India have strengthened, as evident from the Swedish company SAAB receiving clearance to set up a wholly-owned (100 per cent FDI) manufacturing unit in India for producing Carl Gustaf M4 rockets. According to Invest India, SAAB's investment in this venture will amount to Rs 5 billion.

While bilateral trade has faced challenges, Thesleff highlights Sweden's commitment to bolstering cooperation through export credits and financial support, facilitated by agencies like SEK and Swedfund. He underscores Sweden's trade-centric approach, emphasising collaboration over aid.

Thesleff sees promise in the proposed India-EU free trade agreement, viewing it as crucial for both parties, particularly as India undergoes transformation and boasts a youthful demographic.

With steady immigration to Sweden, Thesleff anticipates a growing Indian population, projecting it to reach 1 per cent by 2030.

(KNN Bureau)