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Haryana, Sweden sign ₹4,000 crore LOIs; Gurugram and Stockholm forge sister-city partnerships
Haryana CM Nayab Singh Saini is pitching the state as an investment hub while exploring sister-city partnerships in urban planning during his Sweden visit
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Haryana Chief Minister Nayab Singh Saini’s visit to Sweden has led to the signing of Letters of Intent (LOIs) worth ₹4,000 crore to strengthen investment, trade and economic cooperation between the two sides. The agreements also establish a city-to-city collaboration between Gurugram and Stockholm to promote urban development and facilitate the exchange of knowledge and expertise, officials said on Oct 16.
In a major push towards building a strong and self-reliant India, the Haryana government signed an LOI worth ₹3,000 crore, while agreements worth ₹1,000 crore were signed in the retail and warehousing sectors, officials said.
Haryana and Sweden also agreed to strengthen bilateral trade and economic cooperation, opening up avenues for greater investment and business partnerships.
Officials said Swedish companies are also expected to create employment opportunities for skilled youth from Haryana, thereby boosting skill development, industrial growth, and job creation in the state.
The agreements mark a significant step towards strengthening Haryana’s global economic partnerships and attracting international investment to support its long-term development, they said.
Proposed sister-city model for new urban centres along KMP Expressway
From Swedish manufacturing investments in Haryana to a proposed sister-city model for new urban centres along the Kundli-Manesar-Palwal (KMP) Expressway, Chief Minister Nayab Singh Saini’s ongoing visit to Sweden from October 14 to 17 has opened up several avenues for cooperation. The state is looking to strengthen industrial ties with Sweden while drawing lessons in urban planning and sustainable development.
Addressing the India-Sweden Innovation Day 2026 as the chief guest, Saini pitched Haryana as a destination for investment and manufacturing, highlighting the presence of Swedish companies in Gurugram, Faridabad and Jhajjar. He also invited Swedish businesses to participate in the Happening Haryana Global Investors Summit 2027 and urged greater collaboration in innovation, education, skill development and energy.
“Being present at India-Sweden Innovation Day is a matter of honour. Today's event is an opportunity to advance our shared commitment to innovation for a competitive future under the India-Sweden 2035 vision,” Saini said, thanking the organisers for making Haryana a state partner in this year's programme.
The visit comes as India and Sweden seek to deepen economic cooperation, with the chief minister citing an increase in bilateral trade from $2.86 billion in 2016 to $7.75 billion in 2025. He also referred to the elevation of bilateral ties to a strategic partnership and the two countries' ambition to expand trade and investment.
Swedish companies such as IKEA already have a footprint in Haryana
Saini cited existing Swedish investments and institutional partnerships to underline the state's potential for further collaboration.
IKEA's proposed integrated project worth ₹3,500 crore in Gurugram, the Carl-Gustaf manufacturing facility being established at MET City in Jhajjar, and ABB's manufacturing operations in Faridabad were among the examples he highlighted. He also pointed to the presence of Swedish education group Kunskapsskolan, whose first Indian school opened in Gurugram in 2013.
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“These projects reflect the shared efforts of ‘Make in India’ and ‘Made with Sweden’,” the chief minister said, inviting business leaders and other delegates to explore further opportunities in Haryana.
For Gurugram and its surrounding industrial belt, the focus is on attracting fresh investment, expanding manufacturing capabilities and creating opportunities in sectors where Swedish companies have expertise. The state is also looking to build on engagements undertaken by Union Commerce Minister Piyush Goyal under the leadership of Prime Minister Narendra Modi.
During a meeting with Swedish Minister for International Development Cooperation and Foreign Trade Benjamin Dousa, Saini discussed potential cooperation in education, skills development, and energy. He also highlighted Haryana's 18 dry ports as an area for collaboration.
Dousa welcomed the Haryana delegation and expressed willingness to pursue future initiatives in partnership with the state. Saini invited him to the Happening Haryana event.
A Swedish model for Haryana's next generation of cities
Beyond investment, Haryana is exploring Sweden's sister-city model as a possible framework for more balanced urban development. The state plans to study how established cities and emerging urban centres can share expertise in municipal governance, infrastructure, public services and economic development.
Under the proposed approach, Gurugram could share its experience in investment facilitation, urban planning, and civic administration with emerging cities along the KMP Expressway. The objective is to help new urban centres develop stronger infrastructure and public services rather than allowing growth to remain concentrated in a few established cities.
“The concept of sister cities has ensured uniform development across Sweden, and that is our vision. We want all major cities of Haryana to stand at par with each other when it comes to infrastructure, investment, culture and tourism, and to help each other,” urban local bodies minister Vipul Goel said while outlining the state's interest in the model.
The sister-city concept, known in Sweden as vänort, or friendship town, generally involves cooperation between municipalities in areas such as governance, culture, economic development and public services. Depending on how partnerships are structured, they can support exchanges on public transport, waste management, environmental protection and sustainable infrastructure.
For Haryana, the proposal could offer a way to bring international experience into the planning of its new urban centres. However, its impact will depend on the specific partnerships developed, the responsibilities assigned to participating cities and whether the exchange of expertise translates into measurable improvements on the ground.
KMP corridor at the centre of the urban growth strategy
The KMP Expressway, which connects Kundli in Sonipat, Manesar in Gurugram and Palwal, has emerged as a major corridor for industrial and urban expansion. Haryana's Panchgram vision envisages the development of five new urban centres along the broader corridor to attract investment, create employment, and support planned urban growth.
The proposed sister-city approach could complement this strategy by drawing on Gurugram's experience and addressing the infrastructure and civic service gaps that emerging centres may face.
The challenge is significant. Gurugram's rapid expansion has brought corporate investment and real estate growth, but has also exposed weaknesses in road infrastructure, drainage, waste management and municipal service delivery. Any effort to transfer its experience to new cities will need to take account of these lessons, alongside its success in attracting businesses and building an international corporate presence.
For the new centres, the opportunity lies in integrating infrastructure, mobility, housing and public services into urban planning from the outset.
From diplomatic engagement to delivery
Saini also invited Swedish delegates to visit Kurukshetra for the International Gita Mahotsav, using the visit to highlight Haryana's cultural heritage alongside its industrial and investment proposition.
The broader objective is to translate India-Sweden engagement into practical outcomes for the state, from new industrial projects and technology partnerships to cooperation in education and urban development, officials said.
