Continue liberalisation process - Swedish Ambassador

By Our Special Correspondent

CHENNAI, OCT. 10. Sweden is likely to join the Euro zone within two years or perhaps even earlier, according to the ``personal assessment" of the Swedish Ambassador to India, Mr. Johan Nordenfelt.

Replying to questions at a meeting organised by the Confederation of Indian Industry (CII) here on Wednesday, Mr. Milveden said his country's decision to keep out of the European monetary union was essentially a political one which might not be sustainable in economic terms. The Swedish currency, the kroner, had depreciated not only against the dollar but even against the rupee. Any decision to join the Euro zone was likely to be taken soon after an election by an incoming government rather than just before an election.

With elections being due in Sweden next autumn, the change of policy might come after the polls, he said.

Earlier, pointing to the expansion of bilateral trade since 1992, Mr. Nordenfelt said major Swedish companies like Volvo, Tetra Pak and Electrolux had set up facilities in India in recent years, following the example of Atlas Copco, Ericsson, Scala, Svedala, Skanska, Perstorp Kemi, Sandvik Asia, Delaval, SKF, Oriflame and Swedish Match which had been present even earlier.

India's decision to expand its infrastructure sectors provided an opportunity to Swedish companies. The success of Skanska in winning a contract as the head of a consortium for the Uri hydel project in Kashmir was an example. However, a major impediment to investment was India's bureaucracy, he said.

``From a Swedish business and investment point of view, India needs to get on with the liberalisation process begun in 1991, which now seems to have stalled. There is a strong need to reduce the all-pervasive red tape, and to introduce and implement simplified procedures on the ground at federal, State and local levels. In short, there must be a more welcoming attitude towards international capital and technology", Mr. Nordenfelt said.

IT (information technology) was another sector with significant potential for development and trade. Opportunities included a technology park being set up in Kista, near Stockholm, which would require more than 10,000 trainers for new enterprises. Several Indian companies had set up shop in Sweden and some Swedish IT business were present in India, including Gislen Software in Chennai.

Swedish companies were looking for partners in sectors such as ports, mass rapid transport systems, material and cargo handling, chemicals, biotechnology, health care management, environment management including water management and power generation/transmission/distribution. Another major avenue to be explored was the telecommunication sector in Sweden where a lot of calibration work was likely to be required in future, the Ambassador said.

Mr. Olof Milveden, Trade Commissioner of Sweden, said Sweden had a long inventive tradition as illustrated by Nobel's dynamite, John Ericsson's propeller, Wingquist's self-adjusting bearings, John Petter Johansson's adjustable wrench to the more modern inventions like Engstrom's respirator and Ruben Rausing's Tetra Pak.

The Swedish company, Ericsson, which had started a manufacturing facility in Rajasthan, had become India's largest supplier of digital cellular telephone networks. ABB's partnership with Alstom had resulted in an expansion of its line of business through rapid acquisitions. Volvo, with its unit in Hoskote (Karnataka), had recently introduced vehicles specially designed for defence purposes, and its truck, despite being more expensive than any other truck in India, was notching up sales ``well and according to plan". Skanska had recently won part of the bidding for Delhi Metro, he added.

According to International Data Corporation's (IDC) World Times Survey 2000, Sweden was among the world's foremost nations as far as IT development and internet maturity was concerned.

``This was the first time any nation has moved ahead of the U.S.", Mr. Milveden said.

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