An Indian entrepreneur based in Sweden described that he is shutting down his business in the country, accusing authorities of creating a ‘hostile and dysfunctional’ immigration environment for foreign founders.
Abhijith Nag Balasubramanya, founder and CEO of Hydro Space Sweden AB, said in a LinkedIn post that he has stepped down from the company and sold the business after being forced to leave Sweden by the end of the month. He described the move as “not an exit by choice” but “an eviction by an incompetent and increasingly hostile state apparatus.”
Forced to leave despite building a company
Balasubramanya said he built a fully operational hydroponics company in just six months, creating local jobs and supplying fresh produce in northern Sweden. He said the business was well received locally, with the company’s first harvest sold through local retailers.
However, he alleged that his experience with the Swedish Migration Agency was marked by delays, lack of guidance and inconsistent decisions. “My experience with the Swedish Migration Agency wasn’t just a bureaucratic hurdle, it was a masterclass in systemic dysfunction and unprofessionalism,” he wrote.
According to Balasubramanya, immigration officials handling his case lacked an understanding of startup operations and failed to provide clear instructions on documentation requirements.
‘Startup-friendly image is a facade’
In his post titled Where Innovation Goes to Die in Bureaucracy, Balasubramanya warned other international founders to be cautious about setting up businesses in Sweden.
“The reality of the Swedish ‘startup-friendly’ image is a facade,” he said, adding that his application process involved changing requirements and contradictory decisions.
He also accused officials of ignoring emails and refusing to provide guidance during the process. The agency initially cited one reason for rejecting his case, he said, but later issued a final decision based on a different explanation.
Claims of systemic hostility
Balasubramanya said the political climate in Sweden has contributed to what he described as growing hostility toward foreign talent.
“The current political climate has empowered a culture within these offices that treats international talent with open contempt rather than as a value-add to the economy,” he wrote.
He said he chose not to pursue a legal battle and instead decided to return to India to focus on his mental health, which he said was affected by the experience.
“The Swedish migration agency might have destroyed my life and my dream company but my entrepreneurial passion towards sustainability will never fade,” he said.
Decline in Indian migration to Sweden
According to Statistics Sweden, 2,837 Indian-born individuals left Sweden in the first half of 2024, a 171% increase from 1,046 during the same period in 2023. This marked the first period of negative net migration of Indians since 1998.
Indian immigration to Sweden also declined, falling to 2,461 in the first half of 2024 from 3,681 a year earlier, partly due to tech-sector layoffs and stricter work permit rules. Preliminary data for the first half of 2025 suggests immigration has fallen further to around 1,152 people.