Why are Indians leaving Sweden in record numbers?

A record number of Indians are leaving Sweden. (Representational)

Sweden is witnessing an unprecedented exodus of Indian immigrants, reversing a decades-long trend that has seen more Indians arriving in the Scandinavian nation than departing. For the first time since records began, more Indians left Sweden in the first half of 2024 than those who moved in, signaling potential changes in the factors that have traditionally attracted Indians to Sweden.

Between January and June 2024, a staggering 2,837 Indian-born people left Sweden, marking a 171 percent increase compared to the same period last year. This surge has made Indians the largest group of emigrants, surpassing people born in Iraq, China, and Syria, according to Statistics Sweden. This is a sharp contrast to previous years when Indian immigration to Sweden consistently outpaced emigration, often by a significant margin.

Robin Sukhia, Secretary-General and CEO of the Sweden-India Business Council, urged caution in interpreting these figures, warning against premature conclusions. “We do not believe there is any special reason to this right now, likely have to wait for a full year assessment. Could be a combination of several factors from concluded studies, margins of error, high costs in Sweden last few years, lack of service apartments and accommodation in general. Difficult to know,” Sukhia stated in an email to Swedish media outlet The Local.

While the reasons for this sudden shift are not entirely clear, several contributing factors could be at play. Sweden’s high living costs, a lack of affordable housing, and recent tech layoffs may be discouraging immigrants.

Moreover, the Swedish government's tighter work permit regulations have added to the challenges faced by foreign nationals. The number of work permits granted to highly skilled immigrants fell by 20 percent in the first half of 2024 compared to the same period last year, with first-time work permits to Indian citizens plummeting by 30 percent.

Despite these challenges, Indians continue to be one of the largest groups of new immigrants to Sweden, second only to Ukrainians, whose numbers have surged due to the ongoing war with Russia in their home country. However, the number of Indians moving to Sweden in the first half of 2024 was 2,461, a significant drop from 3,681 during the same period in 2023. Excluding the pandemic years of 2020 and 2021, this is the lowest level of Indian immigration to Sweden since 2017.

This reversal comes after more than a decade of uninterrupted growth in Indian immigration, spurred by strengthened diplomatic ties and Sweden's efforts to attract highly skilled professionals, particularly in the tech sector. However, the current data suggests that these trends may be faltering, and Sweden's ability to attract and retain international talent is under strain.

Adding to the complexity, Sweden’s emigration numbers nearly doubled in 2024, though this increase is partly due to the Swedish Tax Agency’s efforts to improve the population register. This means that some of those registered as having left Sweden this year may have emigrated earlier but were only now formally recorded. This administrative update may include Indians who had already departed in previous years.