Sweden and India announced a strategic partnership deal on Sunday, May 18, aimed at doubling bilateral trade and investment within five years.

Swedish Prime Minister Ulf Kristersson and Indian Prime Minister Narendra Modi made the announcement at a joint news conference also attended by European Commission President Ursula von der Leyen. Annual trade between the two countries currently stands at $7.75 billion.

What does the India-Sweden strategic partnership include?

The partnership targets a doubling of bilateral trade and investment within five years, with Kristersson suggesting it could happen sooner. Key pillars include green transition, defence, emerging technologies, artificial intelligence, space technology, and people-to-people ties.

The two countries’ space agencies also signed a memorandum of understanding to collaborate on an instrument for the Venus Orbiter mission.

How does this deal connect to the India-EU free trade agreement?

Kristersson framed the partnership against the backdrop of the free trade agreement India and the European Union signed in January. Von der Leyen said a formal EU-India agreement was due to be signed by the end of the year at a major business event for European companies. She added that the next step would be an investment agreement, describing it as “the missing piece of the puzzle” in reinforced economic cooperation.

Von der Leyen said deepening investment ties would help both sides reduce risk and diversify supply chains at a time of growing economic security pressures.

Modi, speaking through a translator, said the partnership would advance cooperation across security, technology, and space. The deal reflects a broader push by India to deepen ties with European partners following the landmark EU free trade agreement.

What comes next on Modi’s European tour?

Modi’s European tour continues with a visit to Norway on Monday and Tuesday, which will include a summit with the Nordic countries. The final stage of the tour is a visit to Italy, where Modi is scheduled to meet Prime Minister Giorgia Meloni.

The six-day tour follows the signing of what Modi called the “mother of all deals” with the EU in January.