In a dialog with ET On-line, Finland's Ambassador to India, Kimmo Lähdevirta, mentioned bilateral commerce ties, why India issues to the European nation, and the way Helsinki envisions deeper collaboration within the subcontinent by way of the proposed India-EU FTA.
He mentioned digitalisation, training, sustainability and innovation maintain vital potential, and that Finnish experience will help India scale up its infrastructure, scale back carbon footprints, and strengthen essential methods.
“Digitalisation, training, sustainability, and innovation: I might say that these areas have the perfect potential for, properly, mutually helpful commerce, I might say. And I believe clear transition is a really, very large difficulty that has a number of potential as a result of Finland has superb know-how and know-how in that sector,” mentioned Lähdevirta.
Changing Chinese language tech
“India doesn't need to depend on Chinese language know-how in delicate areas. Finnish firms like Nokia can present dependable options for India in essential sectors,” the Ambassador informed ET On-line.
He described Nokia's Bangalore R&D middle, which focuses on telecom and digital know-how growth together with 5G base stations, as “very spectacular,” noting that the corporate's operations in India lengthen past its former handsets enterprise. Nokia is certainly one of India's largest worldwide telecom infrastructure producers, and is increasing its footprint within the nation, with a give attention to native expertise and analysis.“We're going to rent extra individuals in our R&D centre. Apart from the R&D centre of about 8,000 individuals, we've round 4,000 people who find themselves supporting all international service operations from India. It means there's a big alternative,” mentioned Nokia India Nation Supervisor Tarun Chhabra at an occasion final month.
He added, “Once I discuss to telecom operators world wide, they speak about cyber safety as crucial factor now. I might say we're dedicated for 30 years, and we additional commit that we're going to play a vital function in skilling the Indian individuals right here, after which hiring them in our R&D facilities sooner or later.”
A giant China downside for India
India's push for options to Chinese language know-how is shaping its telecom and digital methods, and Finnish firms can play a key function in offering safe, high-quality options whereas deepening bilateral commerce and technological cooperation.
Dependence on Chinese language know-how has additionally created vulnerabilities in essential sectors, with Beijing tightening management over what it permits Indian firms to entry. In response to an Financial Instances report, a number of Indian corporations have seen know-how switch offers delayed due to new scrutiny from Chinese language authorities, together with in electronics, home equipment and electrical autos.
Trade executives informed ET that Chinese language firms have obtained “verbal” directions to carry again or gradual approvals for abroad technology-sharing agreements, notably these involving mid- to large-sized corporations.
This has left Indian producers uncovered to bottlenecks, with tasks in elements and EV know-how pushed again on account of Chinese language approvals. Executives described the coverage as Beijing utilizing its “trump card” to retain an edge and negotiate from a place of energy — very like its management over uncommon earth provides within the US.
For India, the place sectors from telecom to auto elements stay extremely reliant on Chinese language inputs, these delays reveal the strategic significance of diversification.
Industrial edge: What Finland brings to the desk
Finland is positioning itself as a key associate in India's journey towards sustainable industrial development and power resilience, in line with Ambassador Lähdevirta.
“Vitality is one other large sector the place we have already got large Finnish firms like Wärtsilä and Valmet working right here. And likewise, to illustrate know-how associated to biofuels, for instance, has superb potential,” he informed ET On-line.
“Now we have sectors like maritime know-how as properly the place we've firms like Wärtsilä, which may be very large in that sector. But additionally, for instance, on the environmental aspect, firms known as LAMOR to cope with oil spills, for instance, and different environmental points,” he added.
Finland's energy lies in industrial items and providers, notably in areas like maritime engines and energy era applied sciences. Wärtsilä, an organization specialising in next-generation engines that utilise superior fuels, is a distinguished instance. These engines are designed for each maritime and land-based energy era, addressing India's rising electrical energy wants.
“Issues that need to do with making the grid smarter are crucial. Finland has good applied sciences in that space,” the Ambassador mentioned.
Finland can also be on the forefront of creating sustainable fuels, notably second-generation biofuels derived from non-edible supplies. Lähdevirta famous that Helsinki has been introducing this know-how to India, aiming to help the nation's clear power transition. “Finland is de facto very superior in creating biofuels from all types of supplies… particularly second-generation biofuels manufactured from non-edible supplies.”
With India's fast urbanisation, Finland additionally sees alternatives in building know-how. Firms like KONE, which manufactures elevators and escalators, are already current out there. Ambassador Lähdevirta highlighted how Finnish corporations are serving to scale back the carbon footprint of building, pointing to the nation's lengthy custom in precast constructing know-how. He cited Elematic, a Finnish firm producing precast components, and recalled a go to to a serious building website in Hyderabad: “It was attention-grabbing to see how briskly and the way effectively they have been really constructing.”
Innovation stays a cross-cutting theme in Finland's India technique. Finnish authorities have been working to construct cooperation with startups and different progressive firms, bringing them to Finland for occasions like Slush. “Now we have seen some superb examples of Finnish software program firms coming to India and actually scaling up their companies right here,” he famous.
India-EU FTA: ‘Numerous work must be performed'
The financial relationship between Finland and India is on a stable footing, in line with Ambassador Lähdevirta.
“It's now some 3 billion euros in each instructions, which means exports and imports of each items and providers. After which we've some, to illustrate, 4 billion euros of cumulative investments from Finland to India and a few 1 billion euros from India to Finland. In order that's an excellent foundation,” he mentioned.
He added that whereas the trajectory is constructive, India is typically “missed” by Finnish companies.
To bridge this hole, Finland hosted an India Roadshow in September 2025 with the Indian Embassy in Helsinki and Enterprise Finland to lift consciousness amongst native corporations.
“I believe we nonetheless want extra of this type of consciousness, to illustrate, elevating, in order that each companions actually see the advantages that the opposite one can deliver,” he famous.
On the proposed India–EU Free Commerce Settlement, Lähdevirta struck an optimistic however cautious tone.
“Effectively, we strongly help it and we actually hope that each events can attain a deal by the tip of this yr. I believe it will actually be helpful and vital for either side and particularly within the current scenario the place there's a lot, to illustrate, uncertainty on this planet,” he mentioned.
On the identical time, he added, “numerous work continues to be wanted earlier than a deal may be reached,” and declined to foretell whether or not it may realistically be performed this yr.
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