Nordic outreach: India will benefit from technology and capital flows

The recently concluded third India-Nordic Summit, held in Oslo and attended by Prime Minister Narendra Modi, marks a significant broadening of India’s engagement with the Nordic region — from conventional diplomatic ties to a deeper strategic partnership centred on green technology, innovation, defence manufacturing, and long-term capital flows. The summit produced several key outcomes, including a “Green Technology and Innovation Strategic Partnership”, enhanced cooperation in climate action, Arctic and polar research, the blue economy, and the mobility of students and researchers. Nordic countries also committed themselves to investing $100 billion in India over the next 15 years. India, in turn, offered 100 per cent foreign direct investment access to Nordic defence firms in its defence industrial corridors.

 

This reflects a wider shift in Indian foreign policy towards geoeconomic and technology-driven partnerships. In this context, the Nordic countries offer capabilities that India urgently requires. Bilateral trade between India and the region has reached nearly $19 billion, while more than 700 Nordic companies operate in India. Norway’s strengths in offshore wind, carbon capture & storage, and sovereign wealth capital complement India’s decarbonisation ambitions. Denmark’s expertise in renewable energy, port logistics, and cybersecurity; Sweden’s advanced manufacturing and defence technologies; and Finland’s telecom and digital infrastructure capabilities align closely with India’s industrial and technological priorities. The summit also underlined India’s attempt to diversify its strategic partnerships amid growing global uncertainty. Supply chains remain heavily concentrated in China and East Asia. India’s outreach is, therefore, about building trusted technology ecosystems and resilient economic networks with advanced innovation-driven economies in the region.

 

The clean-energy dimension of the partnership is especially important. India’s transition to green industrialisation will require a wide-range of  technological inputs, infrastructure financing, and specialised expertise. Nordic countries are global leaders in offshore wind, green hydrogen, sustainable shipping, circular economy models, and climate-resilient infrastructure. Norway’s $2.1 trillion sovereign wealth fund, the world’s largest, already holds investment worth over $34 billion across several Indian companies, and can play an important role in financing projects relating to India’s infrastructure and energy transition. Thus, India’s engagement with the Nordic region increasingly intersects with Arctic geopolitics, climate science, and maritime strategy. Cooperation with Nordic countries gives India access to expertise in polar research, maritime technologies, and emerging governance discussions around the Arctic region.

 

The Italy leg of the Prime Minister’s tour reinforced the same strategic direction. India and Italy elevated ties to a “Special Strategic Partnership” and signed agreements on critical minerals, maritime infrastructure, scientific research, and skilled mobility, reflecting India’s growing emphasis on technology partnerships and supply-chain resilience across Europe. Yet challenges remain. For instance, Nordic investors operate under strict environmental, governance and transparency standards, as reflected in controversies surrounding investment in certain Indian companies. India will, therefore, need to strengthen regulatory predictability and governance standards to attract sustained long-term capital.