Date: 10/02/2023

Relevance: GS-2: Effect of policies and politics of developed and developing countries on India’s interests

Key Phrases: Green Transition, Nordic-India Summit, EU-India FTA, joint Nordic solutions, new Climate Investment Fund, Norwegian Sovereign Wealth Fund,European Free Trade Association

Why in News?

• Nordic countries have been pioneering green technologies over the last decades. The Nordics and India together can power the green transition the world needs.

Key Highlights:

• Over the last decades, India has been at the forefront of developing new green technologies and solutions such as hydrogen, offshore wind, batteries and carbon capture and storage solutions that are essential for the world to succeed in the green transition it desperately needs.
• The Nordics have also succeeded in building stable, secure, welfare-based societies that, to a large extent, manage to meet the needs and the wishes of their inhabitants.
• However, the Nordic countries alone cannot deliver the green transition the world requires. Together, the Nordics and India can deliver key technologies and solutions to stop climate change and boost green growth.

Nordic-India Summit:

• At the Nordic-India Summit held in Copenhagen in May 2022, the five Nordic Prime Ministers and the Indian Prime Minister agreed to intensify cooperation on digitalization, renewable energy, maritime industries, and the circular economy.
• Indian Prime Minister expressed an interest in joint Nordic solutions that can support India’s green transition.
• With this objective, the Trade Ministers of Norway and Finland, are visiting India together. (February 9-10)
• During the visit, the aim is to showcase the added value to the partnership which can be brought to India and learn from the impressive innovations and digital solutions being developed in India.
• The Trade Ministers have business delegations and companies with them that are leaders within sectors such as clean energy, circular economy, digitalization, tourism, and the maritime sector. They have great ambitions for increased collaboration with India.
• The most valued and renowned businesses from Nordic countries are already operating in India and have made substantial investments. There are now 240 Norwegian and Finnish companies in India.

India-Finland Trade Relations:

• The past year has seen a significant rise in trade and investments between Finland and India, and India has grown to become a priority country for Finland.
• A great illustration of this is that Finland opened a new Consulate General in Mumbai, which will be inaugurated on February 10.
• This further increases the number of Nordic representations in India’s commercial capital and will contribute to strengthening India-Finnish ties.
• Several Indian companies are looking towards Finland for its expertise in areas of technology and innovation, sustainability, digitalisation, carbon neutrality, and more.
• An increasing number of Indian students, researchers, and experts have been moving to Finland as well.
• Finnish companies such as Nokia and Fortum see India as their largest growth market now and have some of their most significant investments in India.

India-Norway Trade Relations:

• Trade between Norway and India has doubled in the last three years.
• The Norwegian Sovereign Wealth Fund is likely to become one of India’s largest single foreign investors (around $17.6 billion).
• The Norwegian government has also recently established a new Climate Investment Fund for investments in renewables abroad, and India has been defined as a focus country.
• Almost ₹1,500 crores have been invested so far in India through the climate investment fund, and the number of investments is increasing rapidly.

Untapped Potential For Trade And Further Collaboration:

• Both Norway and Finland have ongoing free trade agreements and investments negotiations (FTA) with India.
• Finland, as a member of the European Union (EU), is a part of the EU-India FTA negotiations, and Norway is negotiating through the European Free Trade Association.
• Finalising the free trade and investment agreements with India is a priority for both countries.
• There are very few issues that are outstanding, and we are convinced that it should be possible to conclude negotiations swiftly.
• There are a lot of complementarities in India-Nordic trade relations, as the exchange in goods between them is of a different nature.
• In addition, trade in services is an area of significant potential, especially with tourism, education, IT, energy, maritime and financial services.

Conclusion:

• As India takes rapid strides into a green, digital, and innovative future, Nordic countries such as Finland and Norway stand ready to share experiences and be a part of India’s transition.
• Although significantly smaller than India population-wise and located on the other side of the globe, Nordic countries have world-leading technologies and expertise to offer.
• Technologies and innovations that are successful and scaled up in India can easily be transferred to other parts of the world.
• Together, the Nordics and India can be the powerhouse of the green transition globally.

Source: The Hindu

Mains Question:

Q. The Nordics and India together can deliver key technologies and solutions to stop climate change and boost green growth. Evaluate. (150 words).