India has invited Swedish investments in areas such as renewable energy and infrastructure, besides proposing greater engagement between small and medium enterprises in the two countries.
"There is considerable room for larger investments in India, particularly in areas like infrastructure and renewable energy," Commerce and Industry Minister Kamal Nath said in an interaction with Swedish Minister of Foreign Trade Sten Tolg-fors here .

Sweden is the 12th largest investor in India, with a large number of MNCs having established presence here, an official release said .

Nath, however, said there is a need to enhance cooperation between small and medium enterprises in the two countries.

"There has been a traditional reluctance on the part of Swedish SMEs to come forward to invest in India but in recent years these industries are also exploring India due to inherent advantages of cost benefits and a growing market," he said.

The governments from the two nations must do their best to help the SME sector engage bilaterally, he added.

Trade between the two countries grew by 55 per cent during 2006-07 compared growth in 2005-06. India's export to Sweden increased by 19 per cent, while Swedish exports to India grew by 65 per cent.

India's main items of imports from Sweden include electronic goods, computer software, machinery and gold, while it exports ready-made garments, accessories, metals, cotton yarn and carpets to Sweden.

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