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Swedish cos bet on India, up investment

Swedish companies in India are finding business climate favourable than ever before and they have kept their commitments regarding investments in India and in some cases exceeded it.

Swedish companies in India are finding business climate favourable than ever before and they have kept their commitments regarding investments in India and in some cases exceeded it. The Business Climate Survey is conducted annually by the Swedish Chamber of Commerce in India (SCCI) along with the Embassy of Sweden in New Delhi, Consulate General of Sweden in Mumbai, and Business Sweden. The survey captures inputs from 160 out of 170 Swedish companies present in India. Around 94 companies of these companies are based in Maharashtra which is a major hub for Swedish companies followed by Bengaluru, NCR and Tamil Nadu region. Of the 170 Swedish companies in India more than 100 companies have entered in the last one decade.

The number of companies finding the business climate favourable has gone up to 65% in 2016 from only 15% in 2013. Similarly in 2013 nearly 40% of those surveyed found the business environment unfavourable but now only 3% finding the business climate unfavourable. On Goods and Services Tax matters 3 out of 4 companies said the reform contributed positively to the perception, the survey noted.

Ulrika Sundberg, Consul General of Sweden, Mumbai, said Swedish companies continue to invest, reinvest and expand their manufacturing and operations. “We see a lot of potential in the areas of energy, environment, smart cities, ICT, digitalisation, health-care and life sciences. The companies also tell us that they look positively at the reforms agenda that this government has set.”

Parag Satpute, vice chairperson, SCCI and country manager, Sandvik Asia, said 75% of the companies in Maharashtra will keep investing the coming years and a third of the Swedish firms will increase their investments with more than 20% this year. “Five new companies are planning to invest in the state this year,” he said. “Swedish companies consider the state is changing positively to make investments interesting. In fact, Gujarat and Maharashtra are on top destination list,” he added.

The Sweden-India Business Climate Survey that evaluates the confidence of the Swedish business community doing business in India and assesses opportunities and challenges, was launched in Pune on Tuesday.