BackI am a bit worried about Trump being elected: Mikael Damberg
Sweden's Mikael Damberg is worried about the election of Donald Trump as the US president as his stand on increasing protectionism goes against Sweden's trading, open economy policy
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New Delhi: Almost all of Sweden’s top companies are in India—Ikea, Saab, Truecaller, Skype, Scania, Volvo and Ericsson, to name a few—and all of them are looking for business partners, said Mikael Damberg, Sweden’s minister for enterprise and innovation. Damberg, who is in New Delhi to attend the India-Sweden Business Leaders Roundtable, said in an interview that while Saab is in the process of making an offer to the Narendra Modi government, which wants to buy single-engine jets, Ikea and H&M will help create an ecosystem to drive innovation and assist India’s efforts to encourage manufacturing. However, he is worried about the election of Donald Trump as the US president as his stand on increasing protectionism goes against Sweden’s trading, open economy policy. Edited excerpts:
How do you see Donald Trump as US president?
The American people have made their choice. For Sweden, US relations are extremely important. No other country is more important than the US for creating jobs in Sweden. For us, it is important to keep good contacts with the new administration. We continue to trade and invest both ways with America. I am a bit worried. Some of the things which have been said during the campaign by Mr Trump on trade are worrying because Sweden is a trading, open economy. So, I do feel that if the US takes another position on trade, which is becoming much more protectionist, then perhaps it could affect the rest of the world trade. It would cost jobs and growth opportunities for the rest of the world.
With the US being such a big market for innovation, and in the context of what you just said, is that going to change?
I think the US will continue to be the engine for growth, but they are not the only ones in the world. India is doing very well on the digital side of the economy. Stockholm is second only to Silicon Valley in the world producing unicorns—seven. We see the world will benefit from more trade and cooperation. Altho-ugh Sweden is ranked No. 3 in the world, we cannot rely on that. We cannot stand still. We are competing in self-driving cars. So, next year in Gothenburg, the second city of Sweden, we will have 100 self-driving Volvo cars. That will be the biggest self-driving car project in the world. We will continue to push forward and that’s why we are here in India. We are looking for business partners. We are only 10 million people in Sweden, so we cannot do that alone.
Which are the areas where India and Sweden can collaborate the most?
The ICT (information and communications technology) sector, for sure. I think both countries have started their journey there and the links between both the countries are very strong. Also, the investments that you are doing right now in smart cities, clean India... and these investments done in the right way can spur innovation and transform into Make in India. When Ikea said they will open a store in India, this will not only be a couple of stores opening up. It will be an ecosystem. That’s why I think the innovation capacity of Sweden is paired up with the Indian scene.
A lot of big companies use India as a base for driving their research and innovation globally. Do you see Swedish companies such as Skype, Truecaller doing that?
Truecaller has already made India its springboard for global operations. I think they see the talent in this country, which is very attractive. Many Swedish digital companies have first looked at America as their springboard for rest of the world, but with Truecaller, it has set an example that you don’t have to take the ‘West way’ to the world, you could actually take the other way around to make India a springboard for rest of the world. Perhaps, it might be happening more in the future. But, you should not under-estimate traditional industries’ importance for innovation because when we look at the big societal challenges, it is energy, transportation, ICT, ageing population and healthcare. This is traditional industry that has to reform and that has to be more digital.
What about defence?
It is big. It is not a secret that India is now looking at a new fighter jet and they talked about wanting a fighter jet with one engine. Sweden is one of the few countries that has this capacity. So, of course, we are eager to participate and have a dialogue with India on the issue. We just struck a deal with Brazil. The interesting thing about Brazil was that it was not only exporting Gripen fighter jet, it was not only production set up in Brazil, it was a development side of it also looking for export from Brazil. I think technology transfer element is very relevant if you want to build for Make in India and make it strong for the future, you will have to build a competence and I think it is something interesting that Saab has to offer to India.
Which are the areas that interest you in India?
It is a long range of issues such as defence, security. We see this as a strategic partnership for us. But companies from India and Sweden must find partners for each other, otherwise it will only be a political discussion. If you have seen the list of delegates here, it is really the state-of-the-art sort of companies being here. I joked with them earlier saying that I had trouble meeting you in Sweden, and we actually meet here in India. So, there are possibilities in different sector. You cannot just pinpoint one but, of course, you will see more H&M, Ikea stores open up in India. But, there will be also more strategic business to business cooperation.
The Rafael deal was cut to 36 jets. Is that a matter of concern?
I think Saab has a different approach and they have proved that in Brazil. It is more of a partnership and that has been built over time. Sweden and Brazil have been working for decades together.
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