Exclusive | Swedish Prime Minister Kristersson: India-EU Ties Not Living Up To Full Potential Yet

Last Updated:May 20, 2026, 19:30 IST

PM Narendra Modi and Swedish PM Ulf Kristersson elevated ties to a strategic partnership in Gothenburg, targeting doubled trade and investment within five years

Prime Minister Narendra Modi’s five-day Europe tour, which kicked off in the United Arab Emirates and spans the Netherlands, Sweden, and Norway, with a current stop in Italy, comes at a moment when geopolitics and economics are colliding in unprecedented ways. From rising tensions in the Gulf disrupting global energy routes to the grinding war in Ukraine, the backdrop to India’s outreach is anything but routine. Yet, at its core, this visit is also about something more structural: reshaping India’s economic and strategic partnerships in a rapidly shifting world.

In an exclusive interaction with CNN-News18, Swedish Prime Minister Ulf Kristersson made a strong case for why India–Europe ties may finally be turning a corner. From elevating ties to a strategic partnership and setting a target to double trade to building cooperation in AI, green tech, and critical industries, he stressed that the real shift lies in political will, driven by Modi and Ursula von der Leyen, to move beyond slow execution.

Kristersson also acknowledged Europe’s complex economic ties with China, even as countries like Sweden look to India as a long-term growth partner. With discussions spanning Ukraine and the Gulf and a shared push for a rules-based order, he underscored that this is not a quick fix but a strategic bet on a partnership meant to deliver over time.

Edited excerpts below:

What was the single most important takeaway from your discussions with Prime Minister Narendra Modi? And which one sector are you betting on the most to benefit from deeper Sweden-India cooperation?

There were several concrete outcomes. Most notably, we elevated our ties to a strategic partnership and set an ambitious goal to double bilateral trade and investment within five years.

This is a partnership built on strong complementarities. India brings scale, growth and talent, alongside clear economic ambitions. Sweden offers a high-tech, export-driven economy and a global edge in innovation.

Our economic ties are already expanding rapidly, with major Swedish players like Ericsson, ABB, EQT, IKEA, and Saab deepening their presence in India. But it is not yet living up to its full potential. We believe this is still just scratching the surface.

The real opportunity lies in breaking new ground together, especially in areas like space, green and digital transitions, and critical emerging technologies, where India and Sweden are a natural fit.

India–Europe ties often see strong intent but slow execution. What makes you confident this time will be different?

I don’t believe in quick fixes. At a time of geopolitical turbulence, the EU-India partnership is a long-term bet, built for the future.

What is different now is the momentum. Over the past year, engagement between India and the EU has reached an unprecedented level. The personal commitment of Prime Minister Modi and President von der Leyen has been crucial, and I have congratulated both on the progress towards a free trade agreement.

Sweden has supported this effort from the very beginning. But the FTA is not the finish line; it is the starting point. The real work lies in preparing our markets and businesses so they are ready to deliver from day one.

Sweden is committed to doing that work with India and our European partners to ensure this partnership finally lives up to its full potential.

Europe remains deeply tied to China economically. Is Sweden ready to seriously diversify towards India, or will China continue to dominate?

For Sweden and Swedish companies, India is a major opportunity in its own right, with a fast-growing economy set to become the world’s third largest.

China will remain an important trading partner for Sweden and Europe. But there is no denying that economic engagement has become more complex amid current geopolitical shifts.

This is not a zero-sum game. Sweden has long championed free trade because we believe open markets are the best path to growth and shared prosperity.

Both sides emphasise AI, innovation, and green tech. What concrete collaboration can we expect beyond MoUs and declarations?

Prime Minister Modi and I have endorsed a Joint Action Plan that will steer our strategic partnership over the next four years, with a clear focus on delivering tangible results across sectors.

Artificial intelligence is a key pillar. The AI summit in New Delhi helped connect our innovation ecosystems, with Sweden sending one of the largest business delegations. Together, we launched the Sweden–India Technology and AI Corridor, and the next step is to build this into a full-fledged, future-ready AI partnership.

Green industrial transition is another major area. Through LeadIT, which Sweden and India co-chair, we are bringing governments and industries together to decarbonise sectors responsible for nearly 30 per cent of global emissions. With the launch of its third phase, the focus now is on scaling solutions, mobilising investment, and making the green industry globally competitive.

As we speak, the world is grappling with two major conflicts: the Iran-US crisis, which has disrupted shipping through the Strait of Hormuz and driven up global fuel prices, and the war in Ukraine, with no clear endgame in sight. Did these crises feature prominently in your discussions with PM Modi? And do you believe Sweden and India can jointly play a meaningful role in pushing diplomacy and de-escalation?

Of course, geopolitical developments were very much part of our discussions, including at the recent India–Nordic summit in Oslo.

Russia’s war in Ukraine and tensions in the Gulf underscore how closely Europe’s and the Nordic region’s security is linked with India’s. We are facing a growing set of shared challenges and need to work together to secure resilient supply chains, to ensure a free and open Indo-Pacific, and to uphold the principles of the UN Charter.

Sweden and India already have a strong record of working together in multilateral forums. We see clear potential to deepen that cooperation further, particularly in strengthening a rules-based international order with the United Nations at its core.

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