PRESS TRUST OF INDIA
New Delhi, Nov 15
Notwithstanding the current economic slowdown, Swedish companies’ appetite to invest in India is increasing at an impressive rate, says a survey.
The Business Climate survey, conducted by Swedish Chamber of Commerce in India (SCCI), found that eight out 10 Swedish firms are looking to expand their operations in India.
“The positive outlook and optimism of Swedish companies towards the business potential of the Indian market is truly very encouraging,” Mr Harald Sandberg, Ambassador of Sweden to India, said. Giving credence to this trend is the fact that the number of incorporated Swedish companies in the Indian market has risen 85 per cent since 2007.
“Many Swedish companies are expecting India’s economy to gradually recover and a sustainable, long-term perspective is hold among the companies established in the Indian market,” Swedish Chamber of Commerce chairman Kandarp Singh said.
Besides, 71 per cent Swedish companies are looking to raise their Indian workforce in the coming months, the survey revealed.
However, 54 per cent Swedish companies perceive Indian labour laws as problematic to their growth and operations.
Moreover, 40 per cent of the responding companies find the current Indian business climate to be non-favourable, as compared to 28 per cent last year.
Pointing towards red tape, 17 per cent Swedish firms stated that most of their senior management’s time is spent on dealing with government authorities about application and interpretation of Indians laws and regulations, while 28 per cent perceive increased bureaucracy to be biggest risk facing their business in India.
The survey, which covered 157 Swedish firms, aims to understand their business confidence in India, to identify the obstacles and how they can be reduced.