Trade tariffs between Sweden and India have evolved over time, influenced by economic policies, trade agreements, and global market conditions. India applies different tariffs on imports from Sweden, with rates depending on the product category. For example, certain agricultural products like swine and poultry cuts have a 30% tariff, while industrial machinery and electronic components may have lower tariff rates due to trade facilitation measures.

Swedish exports to India have also fluctuated, especially during the pandemic, but saw a 50% increase in 2022 compared to the previous year. Similarly, Swedish imports from India rose by 43% in the same period. The tariff structure is periodically reviewed, with adjustments made to encourage trade in key sectors such as automotive, pharmaceuticals, and renewable energy.

India has been working on reducing tariff barriers for Swedish companies, particularly in sectors like green technology, smart infrastructure, and digital innovation. Sweden, on the other hand, has maintained a relatively open trade policy, with lower tariffs on Indian exports, particularly in textiles, chemicals, and industrial goods.

Trade Volume Between Sweden and India

The trade volume between Sweden and India has grown significantly over the years, reflecting the strengthening economic relationship between the two nations. In 2024, bilateral trade reached $6.96 billion, marking a steady increase from previous years. Swedish exports to India primarily include machinery, paper, and steel, while imports from India consist mainly of chemicals, clothing, and manufactured goods.

Sweden is the 21st largest investor in India, with cumulative foreign direct investment (FDI) inflows amounting to $2.51 billion from April 2000 to March 2024. Key sectors in India attracting Swedish FDI include automobiles, industrial machinery, engineering, electrical equipment, and metallurgical industries.

India’s exports to Sweden in June 2024 were valued at $104 million, while imports from Sweden amounted to $171 million, resulting in a trade deficit of $66.6 million. Compared to June 2023, India’s exports to Sweden grew by 45.2%, while imports from Sweden increased by 21.6%.

Key Exports from India to Sweden (June 2024)

• Ready-made garments of cotton: $8.82 million
• Electric machinery and equipment: $5.31 million
• Automobile spare parts: $5.22 million
• Iron and steel products: $3.9 million
• Ready-made garments of other textile materials: $3.84 million

Key Imports from Sweden to India (June 2024)

• Iron and steel: $22.8 million
• Pulp and waste paper: $16.3 million
• Paper, paperboard, and products: $12.3 million
• Auto components/parts: $11.3 million
• Industrial machinery for dairy and other sectors: $9.19 million

Latest Trends in Sweden-India Trade Relations

Sweden and India continue to strengthen their trade and investment partnership, with a focus on green technologies, renewable energy, smart infrastructure, and healthcare. Swedish firms have expressed optimism about India’s investment climate, with many companies anticipating increased turnover, particularly in construction, aerospace, IT, and electronics(6).

India and Sweden have also been exploring ways to enhance economic cooperation through bilateral trade agreements and joint ventures. The Joint Economic Commission (JEC) remains the primary institutional platform for government-to-government dialogue between the two nations(8).

Sweden’s growing engagement with India is part of a broader strategy to enhance cooperation with like-minded nations in response to global shifts. Sweden has adopted a more critical stance toward China, due to concerns over its influence on the rules-based global order. Additionally, Sweden’s NATO membership since March 2024 has reshaped its geopolitical strategy, influencing trade policies and economic partnerships(7).

Both countries see potential for collaboration in sustainable development, digital transformation, and advanced manufacturing, with Swedish companies increasingly investing in India’s start-up ecosystem and innovation hubs.

Latest Statistics on Sweden-India Trade Volume

According to the latest data, Sweden’s exports of goods to India amounted to SEK 17.3 billion in 2022, while Swedish imports from India totaled SEK 12.15 billion(8). Swedish exports of services to India were approximately SEK 8 billion, and imports of services from India reached SEK 22.3 billion in 2021.

Sweden’s net trade balance in April 2025 was SEK 6.6 billion, with total exports of goods amounting to SEK 169.5 billion, while imports stood at SEK 162.9 billion(7).

Examples of Successful Trade Partnerships Between Sweden and India

Several Swedish companies have established successful trade partnerships with India, contributing to economic growth and innovation:

1. Volvo Group – Volvo has a strong presence in India, manufacturing trucks, buses, and construction equipment. The company has invested in India’s infrastructure sector and collaborates with Indian firms on sustainable transport solutions.
2. Ericsson – A pioneer in telecommunications, Ericsson has been a key player in India’s mobile network expansion. The company works closely with Indian telecom providers to enhance 5G connectivity and digital transformation.
3. AstraZeneca – The pharmaceutical giant has partnered with Indian firms to develop and distribute life-saving medicines. AstraZeneca’s collaboration with Indian healthcare providers has improved access to advanced treatments.
4. SKF – SKF, a global leader in bearings and lubrication systems, has established manufacturing units in India, supporting the country’s industrial growth and supply chain efficiency.
5. Sandvik – Sandvik has invested in India’s mining and engineering sectors, providing cutting-edge technology and solutions for industrial applications.

These partnerships highlight the strong economic ties between Sweden and India, fostering innovation, investment, and sustainable development.