India, Finland elevate ties to ‘Strategic Partnership’

• Prime Minister Narendra Modi held wide-ranging discussions with President of Finland Alexander Stubb during a bilateral meeting in New Delhi on March 5.

• Following the Modi-Stubb talks, the two sides elevated their bilateral relations to ‘Strategic Partnership’ in digitalisation and sustainability and vowed to double annual bilateral trade by 2030.

• India and Finland also signed agreements including one on migration and mobility that will facilitate mobility of Indian talents to the European nation.

MoUs/Announcements:

1) MoU on migration and mobility partnership: Finland has emerged as an important destination for Indian professionals, particularly in the field of technology and innovation sectors. The MoU on migration and mobility partnership will facilitate mobility of talent laying the frameworks for smooth, orderly, and mutually beneficial mobility for the years to come.

2) Renewal of MoU on environmental cooperation: Renewal of existing MoU signed in November 2020. It encompasses key areas of collaboration that contribute to sustainability, including bioenergy and waste-to-energy solutions, power storage and flexible renewable energy systems, green hydrogen, as well as wind, solar and small hydropower.

3) MoU on cooperation in the field of statistics: To evolve mutual cooperation and exchange of experiences/best practices and collaboration in the field of official statistics.

4) Joint Research Calls under implementation arrangement between the  Department of Science and Technology of India and Finnish Innovation Funding Agency Business Finland.

5) Establish a cross-sectoral joint working group on digitalisation (advancing cooperation in new and emerging technologies such as 5G, 6G, quantum communications, high-performance and quantum computing, AI, etc).

6) Creation of joint task force on 6G (6G research by University of Oulu, Finland and the Bharat 6G Alliance).

7) Greater connectivity of startup ecosystems through the Indo-Finland Startup Corridor (Active participation of Indian startups in Slush in Helsinki and Finnish startups in Startup Mahakumbh in New Delhi).

8) Co-hosting of World Circular Economy Forum in India in 2026 by the Ministry of Environment, Forest and Climate Change and Finnish Innovation Fund SITRA. It is an initiative providing a platform to enhance circular economy solutions and bring together leading expertise in the search for new collaborative initiatives.

India-Finland Relations

• India and Finland have traditionally enjoyed warm and friendly relations. 

• The diplomatic relations between India and Finland was established in 1949.

• In recent years, bilateral relations have acquired diversity with collaboration in research, innovation, and investments by both sides. 

• In 2023, India’s total trade (goods and services) with Finland was €3.3 billion.

• For India, Finland ranks 41st with total FDI inflows by 2024 standing at $569 million (as per DPIIT data). 

• Over 100 Finnish companies have operations in India. Large Finnish companies like Nokia, Kone Elevators, Metso Outotec, Wartsila, UPM, Lindstrom, Fortum, Ahlstrom, Elcoteq, etc have manufacturing facilities in India.

• India’s investments in Finland have crossed $1 billion, including acquisitions. About 30 Indian companies, mainly in the software and consultancy sector, are active in Finland.

• Finland is a leader in 5G/6G technology and Nokia is a world leader in providing the associated infrastructure. Top Indian IT companies are looking to collaborate in this sector.

• The e-visa facility has boosted tourism from Finland. There is a daily direct flight between Helsinki and New Delhi which has encouraged travel between both countries.

(The author is a trainer for Civil Services aspirants.)