From weapons to wheels: Sweden’s deepening ‘Make in India’ partnership

New Delhi: In Haryana’s Jhajjar, just 55 kilometres west of Delhi, a quiet milestone in global defence manufacturing is taking shape. In March 2024, Swedish firm Saab broke ground on its first Carl-Gustaf production facility outside Sweden at MET City, Jhajjar. The plant will manufacture the latest M4 version of the iconic recoilless rifle for the Indian Armed Forces and supply components to users worldwide.

India has operated the Carl-Gustaf since 1976, making it one of the Swedish weapon’s longest-standing users. What began as a straightforward service agreement nearly five decades ago has evolved into a full manufacturing partnership. Saab became the first global defence major to secure approval for 100% foreign direct investment in India, underlining New Delhi’s push to build domestic capabilities while deepening ties with trusted partners. This year, the facility is expected to position India as a node in the global supply chain for one of the world’s most versatile shoulder-launched weapons.

The defence collaboration mirrors a parallel success story in India’s commercial vehicle sector. In 2008, Sweden’s Volvo Group and India’s Eicher Motors formed a 50:50 joint venture, VE Commercial Vehicles (VECV). Volvo contributed advanced technology and Euro-VI engine expertise; Eicher brought intimate knowledge of India’s punishing roads and a vast after-sales network.

Today, the joint venture’s Pithampur plant in Madhya Pradesh serves as the global manufacturing hub for all Volvo Group five- and eight-litre medium-duty engines, supplying customers across Europe and beyond. Eicher-branded trucks now reach 40 countries. Volvo has repeatedly described India as its ‘home base’. In February 2025, Volvo inaugurated the new Eicher Pro X plant in Bhopal, celebrating 17 years of partnership.

From the Carl-Gustaf lines in Jhajjar to the engine plants of Pithampur, Sweden has moved beyond being a supplier to becoming an embedded investor in India’s industrial rise. These ventures reflect broader trends. As India pursues self-reliance under the Make in India initiative, long-term partners like Sweden are helping bridge technology gaps while tapping into India’s cost efficiencies and market scale. It’s a message that Prime Minister Narendra Modi will carry with himself as he visits the country on Sunday, his 2nd visit to the Nordic nation since 2018.