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Swedish companies doing business in India are bullish about India’s investment climate. According to the seventh Business Climate Survey, there is a positive shift in the perception of Swedish companies about investments and expanding their operations in India.
The survey captures the input from 110 Swedish companies established in the country from sectors such as IT, telecom, automotive, service sector, engineering products, defence, direct Sales and retail. The Business Climate Survey is conducted annually by the Swedish Chamber of Commerce in India in partnership with the Embassy of Sweden in New Delhi, Consulate General in Mumbai and Business Sweden.
Fredrika Ornbrant, Consul General of Sweden, Mumbai said, “There is a positive shift in the perception of Swedish companies about investments and expanding their operations in India as it is evident in the results of the Business Climate Survey 2014-15. Over 90 per cent of the companies surveyed believe India’s business and investment climate is favourable as compared to 51 per cent in 2013 and expect it to improve in the coming three years. This shift in perception can be mainly accredited to the initiatives undertaken in India to provide a reliable and foreseeable business environment.”
The number of Swedish companies in India has increased from 85 in 2007 to 153 in 2015. Around 12 new companies were established in India during 2014 , 12 more are right now in pipeline . The cumulative foreign direct investments from Sweden to India until 2013 were $2.15 Billions. In 2013 alone, the foreign Direct Investments from Sweden to India were $ 350 Million up 16 per cent from 2012 .
According to the survey findings, a majority of companies identified taxation regulation and rates, import regulations and custom duties as the most significant challenges in doing business in India.
Parag Satpute, country manager Sandvik and board of director, Swedish Chamber of Commerce India said, “That Sweden ‘makes business in India’ is clear and it is encouraging to see that three out of four companies have increased their investments in 2014 regardless of the negative outlook earlier years.”
