MoU Between India and Sweden on Cooperation in MSME and Trade Ties: Overview and Outline

MoU Between India and Sweden on Cooperation in MSME and Trade Ties: Overview and Outline

Question: The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has recently given its approval for signing of the Memorandum of Understanding (MoU) between India and Sweden on cooperation in the field of Micro, Small and Medium Enterprises/MSMEs. Present an overview of the MoU and a brief outline of trade ties between the 2 nations

MoU: Overview

• MoU aims at promoting cooperation between MSMEs of two nations

• The MoU provides structured framework and enabling environment of two countries to understand each other’s advantages, technologies, markets, policies etc

• This MoU also holds that the respective MSMEs of two countries must participate in trade fairs and exhibitions for understanding policy and exploring markets
• MoU envisages the establishment of JVs, collaborations and technology transfer between MSME of the two nations

• Aim is also to have business delegations from both sides visit the nations

• The MoU opens up new markets for India

• This cooperation has opened up exploration of new markets for both nations without any financial or legal commitments from either parties

Trade Ties: Outline

• Trade ties between India and Sweden were established in 1949

• Bilateral trade between the two nations crossed USD 2 billion mark in 2009-2010 and is set to cross USD 3 billion mark in recent times

• Bilateral trade between the two nations stood at USD 2.8 billion in 2012

• Swedish MNCs have also been present in India such as Ericsson, SKF, Atlas Copco, DeLaval, Volvo, ABB, Astra Zeneca, etc. and have expanded their operations in India.

• Currently, 160 Swedish JVs which are wholly owned subsidiaries in India are present

• Swedish India Business Council has been established with membership of over 120 Swedish companies including SMEs

• Swedish Trade Council has 3 offices in India

• Invest in Sweden Agency also opened its office in India in 2009

Facts and Stats

• 17 countries namely, Tunisia, Romania, Rwanda, Mexico, Uzbekistan, Lesotho, Sri Lanka, Algeria, Sudan, Cote d'lvoire, Egypt, Botswana, South Korea, Mozambique, Indonesia, Vietnam and Mauritius have entered into MoU with India in the MSME sector apart from Sweden

• India’s exports were pegged at USD 825 million while Sweden’s exports equalled USD 1992 million in 2012

Areas for cooperation between the two nations are growing fields such as IT, telecom and biotechnology