The Government of the Kingdom of Sweden and the Government of the Republic of India, (hereinafter referred to as the "Contracting Parties");

Desiring to create conditions favorable for fostering greater investments by investors of one State in the territory of the other State;

Recognizing that the encouragement and reciprocal protection under international agreement of such investment will be conducive to the stimulation of individual business initiative and will increase prosperity in both States,

Have agreed as follows: