Rome [Italy], May 12 (ANI): India's growing economic and strategic importance is driving deeper engagement with Europe, former Swedish Prime Minister Carl Bildt said, noting that Swedish industries are preparing to expand into India following the India-European Free Trade Agreement (FTA).

In a conversation with ANI, Bildt said India's rapid economic growth and emergence as a global manufacturing hub have made it indispensable for companies seeking a major role in the world economy.

'I think it is very important. It's not the first visit, but the fact that we have a series of them, engagement at the highest level, the prime minister, but also engagement on other levels, business leaders and others. It shows that the relationship is a strong one, but I think the relationship is also heading for an even stronger future. There are quite a number of areas where we are already fairly strong in cooperation... After the agreement between India and the European Union, the industry in Sweden is planning to establish itself in India,' he said.

On the India-EU FTA, Bildt said that the fact that India's importance is rising, is because of impressive growth in India itself.

'There is no question that India is becoming far more important. That has to do primarily with the fact that there is an impressive growth in India itself... If you go ahead, say, 15 years, it's going to be the same size as the European economy. So if you want to be a global player in the economy, you have to be present in India, both because of the Indian market and because India is a manufacturing place for global markets,' he said.

Bildt, while talking about the West Asia crisis, said that there is only a diplomatic solution left.

He said, 'You can say that the war is a result of the collapse of diplomacy... We are now in a very difficult situation... There is no military solution to these issues. There's only a diplomatic solution and the sooner one recognises that, the better.'

Stressing that India should use its diplomatic influence amid the West Asia crisis, Bildt also warned that prolonged disruption in the Strait of Hormuz could severely impact the global economy and argued that 'there is no military solution' to the conflict, only diplomacy.

He said, 'I hope that India uses the opportunities it has. It's been Pakistan and Qatar who have been in the lead for the efforts to mend defences at the moment. But I think it's important that all the countries that are affected by this use the diplomatic challenge that they might have in order to try to bring things back to diplomacy.'

The comments come as Prime Minister Narendra Modi is set to embark on a whirlwind five-nation tour from May 15 to 20, covering the UAE, Netherlands, Sweden, Norway, and Italy. (ANI)