India, Sweden upgrade ties to expand economic cooperation

India and Sweden elevated their relationship to a strategic partnership following talks between Prime Minister Narendra Modi and Swedish Prime Minister Ulf Kristersson in Gothenburg. The talks unveiled a new joint action plan covering defense, technology, green transition, digitalization, space, research, and supply chains, according to a press release. Bilateral trade reached USD 7.75 bn in 2025.

The two leaders said the recently concluded India-EU FTA could deepen trade, investment, and technology linkages once implemented. For India, the corridor angle is supply-chain localization: European companies are moving past export-only models, while India is trying to pull more manufacturing, logistics, and technology capacity onto home soil.

Why it matters: The upgrade gives India another European partner for manufacturing, defense, and clean-technology supply chains as companies reassess where they build and source from. AI, health technology, green mobility, and advanced manufacturing are priority areas, with both sides planning a technology and AI corridor and an India-Sweden Science and Technology Center to connect startup and research ecosystems.

Defense is the clearest industrial signal. Modisaid Swedish defense companies setting up production facilities in India showed the relationship moving beyond a buyer-seller model toward a longer-term industrial partnership.

Westward routes: Modi’s meeting with Maersk Chairman Robert Maersk Uggla puts port infrastructure and green shipping inside the Sweden visit’s industrial agenda. Stronger maritime logistics would help connect Indian manufacturing capacity to the Gulf, Red Sea, and European routes, adding a corridor layer to the defense and technology tracks.

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