Sweden-India Ties Enter Dynamic Phase in Global Mfg Reset

• Sweden sees major new opportunities in India as global manufacturing shifts toward digitalisation and sustainability
• Over 280 Swedish firms now operate in India, supporting its shift to capability-led manufacturing
• Collaboration is growing in skills, smart factories, electric mobility, and advanced manufacturing technologies

Sofia Högman, the Swedish Trade Commissioner in India stated that the dynamic growth of Sweden’s collaboration with India is happening during the time when global manufacturing is undergoing a strategic reset.

Global manufacturing will now be driven by changes to global supply chains and the rapid digital transformation of manufacturers and also through the increased demand from manufacturers for greater sustainability.

Högman saod, "looking at the history of our partnership, which began with Ericsson (1903). Sweden’s presence in India has grown into one of Sweden’s most diverse global markets with 280 Swedish companies currently operating in India, of which more than 100 are manufacturing and producing products, and have created approximately 220,000 direct jobs and 2.2 million indirect jobs in India".

Trade between Sweden and India has grown rapidly and nearly 2.5 times larger since 2024, and the amount of goods traded between Sweden and India has grown significantly during that time to approximately $7 billion today.

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“The continued growth of the Sweden-India relationship is in alignment with what is termed as 'India's manufacturing moment' and has led to India rapidly transforming from a low-cost to a capability-oriented manufacturing hub. The Production Linked Incentives (PLI) program, along with a highly skilled engineering workforce, net-zero commitments and growing digital networks will all play an important role in sustaining and strengthening this transformation”, she added.

Högman also mentioned that as the manufacturing sector continues to become increasingly digitalized and automated, a growing importance will be placed on the creation of technical skills and talent. There is already a collaboration between Sweden and India to create vocational training programs that focus on Robotics & Automation, Digital Engineering & Sustainability.

In addition to the collaboration, several Swedish manufacturers have opened training centres and innovation hubs in India to prepare the workforce in India for future job opportunities in Advanced Manufacturing.

The next-generation collaboratives include Ericsson's participation in Smart Factory development; the R&D related to Electric Mobility from Volvo Group; SKF's Intelligent Manufacturing Innovation Hub; and the advanced machining capabilities from Sandvik.

Currently, there are mutual opportunities for Sweden and India to increase their investments with the support of each other's respective technological advances, sustainable practices, and by co-creating new products and services together.