Swedish SMEs believe that the Indian market has a lot of promise, and they anticipate that the FTA will help them expand and improve their partnerships with Indian businesses.
Swedish SMEs Eye Expansion
In the next years, Swedish SMEs in the important industries of industrial automation, healthcare, entertainment, and renewable energy could increase their presence in India.
Senior managers of small and medium-sized businesses (SMEs) in Sweden are optimistic that their industry would greatly benefit from the free trade agreement (FTA) between India and the EU. They claim that in the near future, the FTA would probably result in a notable increase in the exports of SMEs‘ products and services to India and assist them in strengthening their partnerships with Indian enterprises.
Business Sweden Leads Delegation
In New Delhi on Monday, Moneycontrol and Sofia Hogman, Sweden’s Trade Commissioner to India, talked with six top executives of Swedish SMEs. “Business Sweden” has arranged for the delegation of the top Swedish SMEs—APOCCA Automation, Bubl. Technologies, Bjorklunds Kafferosteri, Moonlighting Industries, Seaflex, and SpinChem—to go to India for four days.
The Swedish government and the country’s business community jointly control Business Sweden. Its main goals are to support Swedish SMEs in growing their worldwide sales as well as to promote and aid foreign businesses looking to invest and grow in European nations. Even before the FTA, big Swedish corporations had been operating in India for a long time.
SMEs Expanding Presence India
In the next years, she anticipates that SMEs in important industries, such as industrial automation, chemical process technology, healthcare, entertainment, and renewable energy, would increase their presence in India.
“While Sweden has innovation, sustainability, and sophisticated manufacturing, India possesses growth, talent, digital power, and AI competency, according to Hogman. She pointed out, for example, that Ericsson has AI research centers in three important locations: the US, India, and Sweden.
Sweden-India Trade Overview
Approximately 280 Swedish businesses now employ 220,000 Indians in India. Hogman pointed out that just 75 Indian businesses employ around 10,000 workers in Sweden. According to her, the $7 billion in bilateral commerce between Sweden and India in 2024 might easily treble in the near future.
India mostly imports high-value industrial products and technology and exports refined petroleum, automobiles, broadcasting equipment, textiles, and chemicals to Sweden.
“Regulators must relax.”
The majority of the SME CEOs said that in order for overseas micro, small, and medium-sized businesses (MSMEs) to grow in India, the government must “even further” relax rules across all industries.
“We compete in the market for renewable energy with the innovative concept of floating solar. This week, we are meeting with representatives of the Ministry of New & Renewable Energy to update them on our progress and talk about regulatory matters,” said Lars Brandt, CEO of Seaflex.
Floating Solar Project Challenges
It may be a long and time-consuming procedure for solar projects to get the required permissions and certifications from several government offices at the federal, state, and municipal levels. According to the industry, this often results in major project delays and cost overruns.
We attach the floating solar structures and keep an eye on them. Our Indian clients anticipate lower installation costs as a result of the FTA. Renewable energy projects may expand more quickly as a result,” Brandt said.
The process of placing solar panels atop a building that floats on water is known as “floating solar.” Common locations for these systems include lakes, irrigation canals, flooded mining shafts, reservoirs, and other man-made or placid bodies of water.
Renewable Projects and Regulations
There are now five large floating solar projects in operation in India, with a combined capacity of about 1,000 MW. Madhya Pradesh, Telangana, Kerala, Andhra Pradesh, and Uttar Pradesh are the locations of these. In the field of renewable energy, the central government has permitted 100% FDI via the automatic method.
But according to Rajeev Rathore, CEO of Bubl. Technologies, regulatory barriers in the healthcare industry have drastically decreased in recent years, allowing numerous new players to expand their businesses.
The ease of doing business presents challenges, according to two senior executives of APOCCA Automation, an industrial automation firm that works on electrifying and digitizing ports. “We must communicate with the ports, but for small businesses, even phoning the port administration is sometimes difficult. Alexander Andersson, MD of APOCCA, described the procedure as laborious.
“Collaboration is required.”
According to Peter Farnebo of Moonlighting Industries, a company that develops technologies for the entertainment industry, the partnership between Swedish and Indian filmmakers will increase the appeal of Indian movies in the European nation.
Moonlighting Industries is collaborating with the production crew of the forthcoming film “Ramayana” and has developed an AI assistant to monitor actors’ eye movements. “Bollywood strives to use the greatest technologies available worldwide. We can better grasp the Indian market and establish relationships with Indian stakeholders thanks to Business Sweden‘s effort,” Farnebo said.
Direct Trade and Innovation
The Swedish coffee roastery Bjorklunds Kafferosteri is considering approaching Indian farmers directly to acquire coffee. Specifically, we use a Northern European agent to do this. However, “I want to do it directly, which would also enhance the income of Indian farmers,” said roaster creator Johan Bjorklund.
Since 2017, India has seen a “dramatic shift” in R&D spending, according to Emil Bystrom of SpinChem. Bystrom said, “Indian firms are now looking at other technologies to make it more sustainable and advanced, instead of merely trying to make pharma items cheaper.”
SMEs Driving R&D Growth
“Now, there is a significant difference. For the last seven years, we have been offering tiny devices for development and testing at the lab size. We also received the first large order last week. It is getting there, then. Every business I now see employs between 500 and 2000 people solely engaged in research and development. And it was not there previously,” Bystrom said.
According to the executives, Business Sweden arranged their trip to India with the goal of assisting Swedish SMEs in comprehending the Indian market, government policies, and regulatory environment. “SMEs should begin exploring Asia, particularly India, according to our (Swedish) Minister of Trade. Therefore, before entering the market, it is critical for SMEs to comprehend every element,” said Rupa Thakrar Bagoon, Market Manager at Business Sweden.