The landmark India-EU Free Trade Agreement sends a clear message to the world that trade belongs to the future, not the past, Jan-Olof Jacke, Director General of the Confederation of Swedish Enterprise, said in Gothenburg on 18 May, as Prime Minister Narendra Modi concluded the Sweden leg of his five-nation European tour.

What the Swedish Enterprise Chief Said

Speaking in an exclusive interview, Jacke described the India-EU FTA as a 'fantastic foundation' while cautioning that its full potential would require sustained implementation effort. 'For the India-EU FTA to really materialise, there are a number of things that need to happen — that procedures need to be simple, that customs work well,' he said. 'The trade agreement is a fantastic foundation, but it will take more to make it come to full fruition.'

Jacke welcomed Modi's visit as emblematic of deepening European-Indian ties. 'I think it's fantastic to see EU and India building stronger connections,' he said, adding that Sweden — 'a very innovative country, well advanced, but a small country' — stood to gain significantly from India's 'very talented young population and a fast-growing significant market.'

The Confederation's Chairman Jacob Fallenberg handed Prime Minister Modi a report outlining the potential benefits of the FTA during the visit.

Modi's Engagement With European Industry

Prime Minister Modi addressed the European Round Table for Industry (ERT) in Gothenburg, in an interaction hosted by the Volvo Group. Swedish Prime Minister Ulf Kristersson, European Commission President Ursula von der Leyen, senior European industry leaders, and representatives from leading European and Indian companies participated.

Earlier, Modi interacted with select Swedish company CEOs alongside Crown Princess Victoria of Sweden and Prime Minister Kristersson. The Ministry of External Affairs (MEA) said Modi highlighted that India and Sweden are connected by shared values of democracy, transparency, innovation, and sustainability — a 'strong foundation for an ambitious and forward-looking economic partnership.'

Key Themes From Modi's Address

In his keynote, Modi described the India-EU FTA as a 'transformative economic partnership' that would create new opportunities across trade, technology, manufacturing, services, and resilient supply chains. He also pointed to the India-Middle East-Europe Economic Corridor (IMEC) as adding fresh value to the India-Europe business partnership.

Modi invited European companies to deepen engagement with India under initiatives including Make in India, the National Green Hydrogen Mission, and the National Critical Mineral Mission. He specifically flagged opportunities in clean energy, defence, semiconductors, advanced manufacturing, telecom, AI, deep tech, and life sciences.

The Prime Minister also proposed holding an India-Europe CEOs Round-table annually and creating an India Desk at ERT — institutional steps aimed at giving the bilateral relationship a permanent operational structure.

What the Visit Signals

Bilateral discussions between Modi and Kristersson focused on resilient supply chains, green transition, sustainable mobility, life sciences, and digital technologies. Modi underlined the importance of combining Sweden's strengths in innovation and sustainability with India's scale, talent, and growth momentum to 'co-create solutions for the 21st century,' according to the MEA statement.

Notably, this is the third leg of Modi's five-nation tour, with Norway scheduled as the next stop. The visit comes in the immediate aftermath of the conclusion of India-EU FTA negotiations — giving the Gothenburg engagements added diplomatic weight.

With the FTA framework now in place, attention shifts to the implementation architecture: customs simplification, procedural harmonisation, and sectoral timelines will determine whether the agreement delivers on its headline promise.