India’s business environment continues to shine on the global stage, with the Business Climate Survey 2025-26 by the Swedish Chamber of Commerce India (SCCI) painting an optimistic picture. The survey, which gathered insights from 209 Swedish companies operating across India, highlights the country’s evolution into a highly favourable destination for investment and growth.

Citing the report, Commerce and Industry Minister Piyush Goyal took to LinkedIn, describing the findings as a strong endorsement of India’s robust growth trajectory and its success in attracting global investment. "One of the main highlights of the survey is the resounding approval of the current business climate and rate of business satisfaction, reaffirming the positive impact of ‘Make In India’," Goyal said in a post.

The survey found that 77% of companies rated India’s business climate as “very favourable” or “favourable,” with manufacturing firms leading the charge at 81%. This marks a significant increase from the decade’s average of 61%, highlighting the success of initiatives like Make in India.

The report revealed strong optimism about growth, with 78% of companies expecting their turnover to increase over the next year. Sectors such as construction and building, aerospace and defence, IT, electronics, and business services are particularly bullish, with 42% forecasting significant revenue jumps.

Reflecting this confidence, more than 60% of the surveyed companies plan to increase investments in India next year, with 69% of manufacturing firms aiming to expand production facilities. Nearly half (49%) are focusing on research and development, while 25% intend to establish Global Competence and Capability Centres.

Goyal highlighted this trend, saying, "The majority of companies surveyed, especially those in manufacturing, are looking to increase their investment in the coming year." He also noted that India has become a more important part of companies’ sourcing strategies, driven by cost efficiency.

“The Modi government’s consistent focus on enhancing the ease of doing business has clearly borne fruit,” Goyal emphasised, noting how companies across sectors increasingly see India as a trusted partner in their growth strategies.

Manufacturing: The backbone of India’s global integration

Manufacturing continues to be the backbone of India’s ambitions to integrate deeper into global value chains. The survey shows that 63% of manufacturing companies have elevated India’s importance in their sourcing strategies, thanks to cost efficiency and local expertise.

Sectors like industrial equipment stand out, with 58% of companies intensifying their focus on India. The report concludes that the vision to develop India as a global manufacturing hub is no longer aspirational — it is fast becoming a reality.

Trade between India and Sweden has surged impressively, with bilateral trade in goods increasing from $2.86 billion in 2016 to $6.96 billion in 2024. The number of Swedish companies with a business presence in India has grown to 280 over the past 7-8 years.

Swedish business roots in India date back more than a century, with firms such as Ericsson, Swedish Match, SKF, and ABB establishing a significant presence, particularly in Pune, from the 1960s.

The survey findings reaffirm India’s standing as an attractive destination for global businesses. With a positive business climate, high satisfaction rates, and strategic focus on key growth sectors, India has carved a distinct position on the global map.