India-Sweden relations

Category: International Relations

India-Sweden relations

Historical Contacts

The historical ties between Sweden and the Indian subcontinent can be traced back to at least the 8th century AD, during the Viking era. Evidence of this connection includes the remarkable discovery in 1954, when archaeologists unearthed a small bronze Buddha statue during the excavation of an 8th-century Viking ship on Helgö, Sweden. This artifact, which is believed to have originated in present-day Kashmir around the 5th century AD, highlights the cultural exchanges that may have taken place along trade routes during that time. Today, the statue is on display at the Swedish History Museum, and its significance was further commemorated in March 2015 when PostNord Sverige released a postage stamp featuring the statue, symbolizing the ancient ties between the two regions.

18th Century Trading Ventures

In the mid-18th century, Sweden made significant efforts to expand its trading presence in India through the establishment of the Swedish East India Company. The company sought to capitalize on trade opportunities, particularly in the regions of Bengal and Surat in Gujarat. However, the Swedish endeavors were met with stiff competition from well-established rivals such as the British, French, and Dutch East India Companies. Although some trading ventures by the Swedish East India Company yielded profits, the overwhelming dominance of these rival companies compelled Sweden to reassess its trading strategies, ultimately shifting its focus toward China, where opportunities for trade were perceived to be more favorable at that time.

20th Century Developments

The early 20th century witnessed an increase in Swedish corporate involvement in India. Companies such as Ericsson, Swedish Match, and ASEA (now part of the ABB Group) established their presence, laying the groundwork for future economic ties. SKF, a notable Swedish bearing manufacturer, ventured into India by setting up a small branch in Kolkata in 1923. Following India's independence in 1947, SKF India Ltd was formally incorporated in 1961, and the company expanded its operations by establishing a bearing factory in Pune, Maharashtra, just two years later. This period marked a significant shift as Swedish companies began integrating into the Indian market, contributing to India's burgeoning industrial landscape, and building a foundation for long-term bilateral relations that continue to evolve today.

Modern relations between Sweden and India have a rich historical backdrop, beginning with Sweden's recognition of India as an independent nation in 1947. This recognition was significant at a time when many countries were still navigating their post-colonial identities. In 1949, just two years after establishing diplomatic ties, India opened a legation in Stockholm, demonstrating a commitment to fostering bilateral relations. Initially, the Indian head of mission held the rank of envoy extraordinary and minister plenipotentiary, indicating the importance India placed on its relationship with Sweden. By 1962, this mission was elevated to an embassy, which further solidified the diplomatic framework and engagement between the two nations.

The interaction between the leaders of both countries began to take shape with the visit of Prime Minister Jawaharlal Nehru to Sweden in 1957, marking a significant milestone in the relationship. Nehru's visit was followed by his daughter, Indira Gandhi, who attended the United Nations Conference on the Human Environment in Stockholm in 1972. Such high-profile visits highlighted not only the political ties but also a mutual interest in global issues and environmental challenges, which became increasingly relevant in the decades to follow.

However, the relationship faced significant strain during the late 1980s when the Bofors scandal erupted in 1987. Investigative reports from Swedish and Indian journalists revealed extensive corruption involving Bofors, a renowned Swedish arms manufacturer, which led to allegations of large kickbacks to influential Indian politicians. The fallout from this scandal severely impacted the Indian Congress Party, culminating in its defeat in subsequent general elections. Despite this challenging phase, the bond between the countries began to strengthen again in the 2000s.

Following this period of turmoil, both nations have worked diligently to revitalize their ties. Economic and cultural relations have been prioritized as both governments have expressed a commitment to enhancing cooperation in various sectors. The frequency of bilateral visits has increased considerably, showcasing a renewed focus on collaboration. Prominent leaders, including Swedish Prime Minister Stefan Löfven, have publicly supported India's aspirations for a permanent seat on the United Nations Security Council, indicating an alignment of international interests. This ongoing dialogue and cooperation underpin a modern relationship characterized by mutual respect and a shared vision for the future.

In recent years, the frequency of bilateral visits between India and Sweden has notably increased, underscoring a growing partnership between the two nations. This enhanced engagement is reflected in the number of high-profile visits from both countries at various levels, particularly from ministers and parliamentarians. Throughout history, four prominent Indian Prime Ministers—Jawaharlal Nehru, Indira Gandhi, Rajiv Gandhi, and Narendra Modi—have made official visits to Sweden, each one contributing to strengthening diplomatic ties and enhancing bilateral cooperation.

On the other side, Sweden has also actively engaged with India through several significant visits. For instance, Prime Minister Göran Persson visited India in January 2004, marking an important step in cementing relations during his tenure. His successor, Fredrik Reinfeldt, participated in the India-EU Summit in November 2009, where he also engaged in bilateral discussions aimed at fostering collaboration in various sectors. More recently, Stefan Löfven took part in the "Make In India" initiative by visiting Mumbai in February 2016, demonstrating Sweden’s commitment to industrial and technological collaboration in India.

The royal family of Sweden has also played a role in fostering relationships, most notably King Carl XVI Gustaf and Queen Silvia’s state visit to India in 1993. The King showcased Sweden’s commitment to technology and innovation by leading a technology delegation to India in 2005, a move that aimed to explore opportunities for cooperation in scientific and industrial fields. Additionally, in a historic event, former Indian President Pranab Mukherjee made a state visit to Sweden in June 2016, becoming the first President of India to do so. This visit not only marked a milestone in bilateral relations but also served as a platform to reinforce cooperation in areas like climate change, sustainable development, and trade.

Such visits are pivotal, as they enable both nations to engage in direct dialogue, exchange ideas, and promote mutual interests. The growing frequency of these meetings reflects a broader commitment towards strengthening ties, enhancing people-to-people connections, and fostering economic and technological collaborations between India and Sweden, paving the way for a robust partnership in the years to come.

Economic Cooperation

The economic relationship between India and Sweden has been steadily growing, with bilateral trade exceeding US$2 billion. This positions India as Sweden's third-largest trade partner in Asia, following China and Japan. The sectors involved in this trade reflect a diverse industrial focus. Sweden primarily exports pharmaceuticals, paper and pulp products, chemicals, engineering products, and telecom equipment to India. In contrast, India exports chemical products, food items, and both semi-manufactured and manufactured goods to Sweden. This interplay of exports indicates a balanced trade relationship that benefits both nations by leveraging their respective strengths.

A significant milestone in this bilateral relationship occurred from December 2 to 5, 2019, when Sweden's King Carl XVI Gustaf and Queen Silvia undertook a state visit to India, marking the first royal visit in 26 years. This visit was substantial not only for its historical context but also for its economic implications. Alongside the royal couple, prominent figures such as Foreign Minister Ann Linde and Minister of Enterprise Ibrahim Baylan, along with representatives from over 50 Swedish organizations, participated in this visit. This high-profile delegation underscores the importance Sweden places on its relationship with India and demonstrates its intent to enhance economic ties further.

The increasing frequency of high-level visits between the two countries highlights the growing diplomatic and economic engagement. In June 2015, Pranab Mukherjee became the first Indian President to visit Sweden, marking a pivotal moment in the political relationship. Following this, Swedish Prime Minister Stefan Löfven participated in the ‘Make in India’ industrial fair held in Mumbai in February 2016. This visit symbolized Sweden's commitment to engaging with the Indian market and reinforcing its intention to support India's manufacturing aspirations. Building on this momentum, Indian Prime Minister Narendra Modi visited Stockholm in April 2018, further solidifying ties and fostering discussions on enhancing trade cooperation.

These visits are strategically projected by Sweden as a means to promote the export of goods and services, while from India’s perspective, they are framed as opportunities to attract Swedish investments under the "Make in India" initiative. This program focuses on turning India into a global manufacturing hub by encouraging both domestic and foreign companies to manufacture their products in India. Consequently, these bilateral interactions not only strengthen economic cooperation but also pave the way for collaborative ventures that can drive innovation and growth in both countries.