New Delhi, Jan 29, 2026
Terming the EU–India Free Trade Agreement (FTA) “historic”, Sweden’s Ambassador to India Jan Thesleff said the pact reflects strong mutual confidence between India and the European Union and will unlock significant new opportunities for Swedish companies, particularly small and medium-sized enterprises (SMEs), in India and vice versa.
In an exclusive interview to IANS, Thesleff said: “This is an agreement that truly shows the confidence India places in the European Union and the confidence the European Union places in India.”
He noted that while Sweden already has a strong business presence in India, the FTA would lower entry barriers and encourage many new Swedish companies to explore the Indian market.
“For Sweden, this agreement will open new doors for actors who are not yet present in India. It will trigger a more innovative and interactive relationship between Sweden and India, and between the EU and India,” he added.
Highlighting the importance of SMEs, the Ambassador said employment generation, creativity, and innovation largely come from small and medium-sized companies. “This agreement will benefit all parties enormously, especially SMEs and MSMEs on both sides,” he said.
Thesleff pointed out that around 400 Swedish companies are currently operating in India, accounting for about seven per cent of all EU companies present in the country. “The agreement sends a strong signal to those not yet here that India is a market worth investing in, manufacturing in, and developing new products in,” he said.
Beyond trade and investment, the Ambassador emphasised the agreement’s wider impact on scientific and technological cooperation. “This is also a signal to our research and innovation partners. It is an invitation to work together, create centres of excellence, and collaborate in India, with India, and in Europe,” he noted.
On sectors likely to benefit, Thesleff said Sweden has a broad engagement with India across manufacturing, pharmaceuticals, IT, automobiles, and clean energy. “All these sectors will gain from the agreement. Many Swedish brands are already household names in India,” he said.
He also stressed that the partnership is a two-way street. “It is not only European companies coming to India; Indian companies are also investing in Europe,” he said, adding that around 75–80 Indian companies have invested in Sweden. “Just a few months ago, an Indian investment in Gothenburg created 1,500 jobs,” he noted.
The Ambassador underlined that the EU–India FTA is about more than trade. “It is about creating jobs and generating value for both sides,” he said.
On opportunities for skilled professionals, Thesleff said the agreement would encourage greater mobility of talent. “When investments take place, they create jobs. Skilled Indians coming to Sweden and Swedes coming to India bring back not just salaries, but skills and expertise. I call this ‘intellectual remittances’,” he said.
He noted that Indians are currently the largest group of foreign professionals coming to Sweden. “By 2030, we expect one per cent of Sweden’s population to be Indian. Though geographically distant, Sweden and India are growing closer every minute,” he added.
Praising Prime Minister Narendra Modi’s leadership, Thesleff said India has repeatedly proven itself on the global stage. “During India’s G20 presidency, we clearly saw the country’s leadership role. I am confident we will see it again in the near future,” he said.
At a time when the United States is imposing tariffs and global trade faces growing uncertainty, the proposed EU–India trade agreement sends a strong signal that rule-based cooperation is still possible, Thesleff said.
“The signal India and the EU are sending to the world is that we can get together, we can agree, and we can have a rules-based world order,” Thesleff said, adding that both sides are committed to agreed tariffs and long-term reliability as partners.
Referring to global volatility and uncertainty, he said the current situation itself proves that “the opposites can also work”, underlining the importance of stable and predictable partnerships in an increasingly fragmented global economy.
On India’s demand for permanent membership of the UN Security Council, Sweden expressed clear support for reform of the global body. “We are in favour of reform of the UN system, and we feel that India, in a reformed United Nations, has a rightful place at the table, at the Security Council,” Thesleff said.
Highlighting India’s role in the diversification of global supply chains, Thesleff said globalisation has shown how deeply interconnected countries are, while also exposing the risks of over-dependence. “We must have flexibility and openness to source,” he noted, adding that free trade agreements help secure supply routes and strengthen resilience.
On cooperation in skill development and talent mobility, Thesleff said Sweden has been actively engaging with India for several years. “Every year, 15 to 17 Swedish universities come to India to attract talent,” Thesleff said.
Praising India’s demographic strength, the envoy added that India has a “richness of talent”, with its youth demonstrating creativity and innovation. “Swedish universities want to tap into that pool,” Thesleff said, underlining education and talent exchange as a key pillar of India–Sweden cooperation.(Agency)
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