New Delhi: India has secured the No. 1 position in the 2026 Global Business Climate Survey, sharing the top ranking with Ireland among the 41 markets assessed by Business Sweden. The result places India at the top of a survey that measures how Swedish companies operating around the world view the business environment in their markets.
The finding comes at a time when businesses around the world are dealing with geopolitical tensions, changing trade rules and a more uncertain global economy. For India, the survey offers a closer look at how companies already operating in the country see the market, rather than simply measuring outside investor sentiment.
The distinction matters. The survey does not ask businesses around the world to choose their favourite country for investment. It captures the experiences, expectations and views of Swedish companies operating in different markets. More than 2,250 senior representatives of Swedish companies took part in the global survey, making the 2026 edition the largest since the survey began.
Business Sweden says India, Ireland and Vietnam stood out among the top-ranking markets this year. The result puts India in a strong position within a survey that looks at the practical business environment faced by companies on the ground.
The India-specific findings are equally notable. Team Sweden in India conducted its survey during February and March 2026, reaching 263 Swedish companies. A total of 213 companies responded, giving the survey an 81% response rate.
Among the companies surveyed, 73% rated India’s current business climate as good or very good. Only 4% described it as poor or very poor. The positive assessment was slightly lower than the 77% recorded in the previous year’s survey, showing that while confidence remains strong, companies are not ignoring the challenges of operating in the country.
Where the survey becomes particularly interesting is in the expectations for the year ahead.
About 83% of Swedish companies in India expect their industry turnover to increase over the next 12 months. At the same time, 61% said they plan to increase their investments in India, while only 2% expect their investment to decline.
That confidence is linked to the changing role India plays in the operations of Swedish companies. India is not being viewed only as a market where products can be sold. For many companies, it has become part of manufacturing, sourcing, research, support and wider supply-chain operations.
The survey found that 62% of respondents have marketing and sales operations in India, while 50% have after-sales and support activities. Manufacturing and assembly are reported by 41% of companies, 35% are involved in sourcing and trading, and 30% have research and development activities.
The numbers also show that many of these companies are not new to India. Around 62% of respondents established their Indian operations between 2005 and 2020, while 23% have been operating in the country since before 2004. At the same time, 15% entered the Indian market after 2020, showing that new Swedish businesses continue to arrive.
Profitability is another part of the picture. Sixty-eight per cent of the surveyed companies said they were profitable in India in 2025. The report found that larger and more established companies generally reported stronger profitability, while newer entrants were still building their position in the market.
Investment has also picked up. According to the report, Swedish investment in India exceeded $1 billion across 20 announced projects in 2025, based on Financial Times fDi Markets data. Since 2020, cumulative Swedish investment has reached about $2.8 billion and has been linked to more than 21,000 direct jobs, according to the same source cited by Business Sweden.
But the survey also makes clear that India’s business story is not simply about rising confidence.
Companies continue to face difficulties with parts of the regulatory and administrative system. Suppliers and service providers received the strongest ratings at 7.3 out of 10, while distributors and digitalisation scored 7.2. Access to specialists and key personnel was also rated positively.
Licences, permits and approvals scored 5.9, while customs procedures received the lowest score at 5.8.
Customs, regulations and local requirements were identified as significant barriers by between 20% and 30% of respondents. The report also notes that the share of companies identifying customs procedures as a significant problem increased by 11 percentage points compared with the previous survey.
Quality Control Orders, or QCOs, are another issue raised by Swedish companies. Thirty-seven per cent of respondents said QCOs had significantly or very significantly affected their operations, while 62% said they had experienced at least some impact. More than 700 products remain covered by QCO requirements, according to the report.
The India-EU trade relationship could also change the business environment in the coming years. Seventy-three per cent of Swedish companies surveyed said they expect the India-EU free trade agreement to have a positive impact on their business in India within two years of implementation.
For companies already operating in India, the survey also shows what they believe matters most when competing in the market. Cost efficiency was identified by 58% of respondents as an important factor, followed by product development at 42%, sales competence at 34% and partnerships and relationships at 30%.
The findings have also been picked up by Union Commerce and Industry Minister Piyush Goyal, who shared the survey on X and highlighted India’s position in the global business climate assessment. In his post, Goyal described India as the world’s favourite destination to do business and pointed to the survey as evidence of the country’s strong business environment.
Taken together, the findings present a more detailed picture than the headline ranking alone. Swedish companies are reporting strong profitability, higher turnover expectations and plans for additional investment.
At the same time, they are pointing to customs, approvals, regulations and local requirements as areas where doing business can still become complicated.
That balance is important. India’s position among the leading markets in the 2026 survey reflects strong confidence from Swedish companies already operating here, but the same companies are also signalling where the business environment still needs to become simpler and more predictable.
For India, that may be the more meaningful message behind this year’s survey: international companies are continuing to expand their presence in the country while also looking for fewer barriers as they do so.
Business Sweden — Global Business Climate Survey 2026
Business Sweden — India Business Climate Survey 2026
