India's Engagement with Nordic Countries

Days before assuming power, Prime Minister Narendra Modi, displayed a rare streak of diplomatic ingenuity and initiative of fostering good relations with neighbors by inviting heads of SAARC nations for his swearing-in ceremony. Ever since, he continued the tradition of engaging with different multilateral groups. At the SAARC summit held at Nepal in 2014, to enhance regional cooperation, Modi pledged that India will hoist a communication satellite, barring Pakistan, all other countries hailed the step and by May 2017, scientists at ISRO successfully placed the South Asian Satellite in space. In 2015, India hosted the leaders of 14 Pacific Island nations under the India’s extended Act East Policy at Jaipur. In fact, the Forum for India-Pacific Islands cooperation (FIPIC) was first conceptualized in 2014. Similarly, to provide fresh impetus to Indo-African traditional ties, India held India-African Forum Summit (IAFS) in October 2015 at Delhi. In 2016, India held annual BRICS summit at Goa and invited members of BIMSTEC (Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation) to participate. This year, India hosted leaders from ten ASEAN (Association of South East Asian) countries for the Republic Day celebrations. Last month, India held the first International Solar Alliance (ISA) summit attended by 23 heads of nations and 10 ministerial representatives at Gurugram.  In a marked shift from symptomatic reluctance and reticence, Modi ushered India into a new realm diversifying relations with various regional stake holders.

Committed to the new paradigm of collective engagement, Modi has embarked on a five-day trination tour on April 17^th making his first stopover at Sweden. Modi was received at Arlanda airport, Stockholm by Prime Minister Stephen Lofven, who extended a ceremonial welcome. In a rare display of effusive warmth and hospitality both prime ministers traveled together in the same vehicle from airport to hotel. The bilateral visit to Sweden for attending the first ever India-Nordic Summit has been first by an Indian prime minister in the past three decades. For long, India eschewed from a robust diplomatic engagement with Nordic countries -Denmark, Iceland, Norway, Finland, and Sweden that have a unique international identity. Having achieved sustainable development and progress by lapping up innovative technologies, these countries have been the top most democracies in terms of freedom, gender equality, rated as best societies in terms of human development index (HDI). Four out of these five countries are among the top least corrupt countries of the World. They have several socio-political and economic lessons to offer to developing countries like India. Nordics are extolled for good governance, promoting peace and for upholding universal human values. These countries have excelled in renewable energy generation, developing environmental friendly technologies, emerging as shining examples of post modernization. Moreover, Nordics are among the top ten happiest countries of the World. Though India established diplomatic relations with Nordics shortly after independence misunderstandings marred bilateral ties.

Till date, Sweden reminds India of the Bofors arms scandal and the dubious business dealings, similarly India’s ties with Denmark nose-dived in 1995, after a citizen of Denmark, Kim Davey was found to be involved in the arms dropping in Puralia, West Bengal. Duplicitous attitude of Denmark hindered the extradition process soaring the relationship. Efforts by successive Indian governments failed to bring back Davey for prosecution in India. More recently, the case of Indian child taken into government custody in Norway affected bilateral ties. Even now, India and Nordic countries have minor difference over interpretation of towards human rights, terrorism, and corruption.

To break ice and nurture friendly relations with the Nordics, India made the first move. In October 2014, President Pranab Mukherjee visited Norway and Finland and signed several agreements which included nuclear energy cooperation with Finland. Mukherjee visited Sweden in May 2015, laying ground for firm cooperation between two countries. In all, he signed six agreements-cooperation in sustainable development, MSME enterprises, visa exemption for diplomatic passport holders, collaboration in polar and ocean research, cooperation in ageing research and pharmacovigilance. After a slump in economic growth in Europe, export-oriented Nordic countries began slowly shifting their focus towards high-demand Asian markets. In the past decade, Nordics cultivated extensive trade and investment links with China. With India now projected as the fastest growing economy, Sweden reposed great enthusiasm in building friendly ties with India.

Reciprocating Indian President’s visit, Swedish Prime Minister Stephen Lofven, accompanied by a large business delegation made a visit to India in February 2016 for “Make in India”, week at Mumbai to deepen investments in India.  Subsequently, India and Sweden Business Leaders Round Table Conference was created and held first meeting in November 2016. Lofven’s visit gave a big boost to defence cooperation whereby the India-Swedish Joint Working Group resolved to promote Make In India in defence sector. India is the 19^th largest export market for Sweden and third largest trading partner. Indian companies like Aditya Birla, Wipro and Bharat Forge made big investments in Sweden. Over 170 Swedish companies have invested $1.4 billion since 2000 in sectors of automobile industry, industrial machinery, electrical equipment, mechanical and metallurgical industries. Of them, five firms- Ikea, Tetra Pak, Haldex, Astra Zeneca and Ericsson are partners of Make in India Bilateral trade stands at $1.78 billion.

Both countries established diplomatic ties in 1949 and currently have institutional mechanism for inter-governmental functioning the areas of economic, industrial and scientific cooperation and have joint working groups on digital technologies and economy, sustainable development and environment. Modi held bilateral talks with his Swedish counterpart and in the Joint Action plan both countries agreed to work together on international issues of mutual concern, climate change, Agenda 2030, human rights gender equality, humanitarian issues and international trade. Firmed out their commitment to foster ties in the fields of innovation, trade and investment, smart cities and next generation transport, smart sustainable and renewable energy, women’s skill development and empowerment, defence, space and science and health and life sciences. Sweden a front runner in defence manufacturing expressed willingness to supply defence equipment. With the experiences of Bofors scandal looming large, for decades India largely shied away from making any defence deals with Sweden. But with countries having agreed to share classified information, the chances of Saab AB delivering Gripen fighter jets have brightened. Kick starting Indo-Swedish partnership, Sweden pledged 50 million kroner towards smart cities and sustainability projects.

After the conclusion of bilateral talks, Lofven remarked, “India has emerged as a global power. No important global conversation is complete without the voice of India”. Undoubtedly, all other Nordic leaders share the same view and hence expressed great interest in holding first ever joint historic summit with India. The only other instance Nordics held similar summit was with President Obama in 2016. Equipped with complementary advantages and unique strengths, India and Nordic partnership holds promise for boosting economic growth and investment. As now, cumulative trade with Nordic countries is around $ 5.3 billion and their cumulative investment totaled to $2.5 billion.

India’s outreach with Nordic countries will be a special way of connecting with North European countries whose commonalities are embellished with different international approaches. Of them-Sweden, Finland, and Denmark are part of European Union. Iceland, Norway and Denmark are members of NATO (North Atlantic Treaty Organisation). Sweden and Finland stayed away from the muddles of Cold war. By and large, Nordics are known to be peace-mongers and have reputation of facilitating peace processes. 

In the Joint Summit, India and Nordics agreed to strengthen cooperation and work together for shared common ideals like climate change, environment, innovation, sustainable goals. All of them reiterated the need for greater engagement to drive growth employing the novel innovation approach of Nordics. Amidst burgeoning protectionist measures in global trade, leaders stressed the need for a rule-based multilateral trading system which is open and inclusive. Leaders indirectly took at dig at China for flouting rules- based international system, human rights, and rule of law.  Indeed, Nordics initially raised their concerns of flagrant denigration of human rights and freedom of expression with China. Imposing trade sanctions and halting exports from Nordics, Beijing forced them into silence. Tellingly, in the joint statement, Nordics joined India calling for upholding international conventions and rules. Nordics reaffirmed the need for reforms in UNSC and extended complete support for India’s permanent membership to UNSC and its admission into the prestigious nuclear regime, Nuclear Suppliers Group (NSG).

After the summit, Modi met Nordic prime ministers separately.

Finland a traditional friend of India is known to be repository of modern technology. Finnish goods have high demand in Indian markets. Over 100 Finnish companies have operations in India.  Modi with his Finnish counterpart Juha Sipila reviewed cooperation between two countries in the areas of trade, culture, textiles, air services, science and technology, investments, avoidance of double taxation environment, renewable energy, nuclear and radiation safety.

Modi and Iceland Prime Minister Katrin Jakobsdottoir, viewed signing of MoU for establishment of Hindi Chair at the University of Iceland. Several Icelandic companies like Greenline Software, Actavis Pharmaceutical, Promens have a large presence in India.

First official contact between India and Norway was on February 21^st1947. Cordial Indo-Norwegian are rooted to shared values of democracy, rule of law and human rights. Joint working groups between these countries exist in fields of fisheries, education, environment, hydrocarbons and maritime law. Key areas of Norwegian investments have been Shipbuilding, IT industry, clean energy, hydropower. Modi and Norwegian Prime Minister Erna Solberg held brief talks.

Unlike his predecessors, Modi nonchalantly overlooking impediments posed by Denmark judicial system for extraditing Kim Davey conducted bilateral talks with Danish Prime Minister Lars Lokke Rasmussen. Both countries signed four MoUs on sustainable and smart urban development, animal husbandry and dairying, food safety and agriculture research. Reports now emerge that Prime Minister Rasmussen in an exclusive conversation with Wion raised hopes of resolving Puralia Arms Drop case. He assured, “Director general of prosecution is looking into it…we have to start the case in legal track and restart cooperation”.

With the US and China donning competitive protectionist approach, Nordics, strong proponents of open and inclusive society are looking forward to deepening trade and investment ties with India. Modi’s fervent invitation for investments will go down well with Nordics. Against the background of growing Chinese presence, India is excessively focused on nurturing inherited good relations. Modi’s effervescent diplomatic outreach to Nordics is admirable.

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