World businesses seem to collaborate and hold each other’s hands for good. The actual distance between Finland and India has become less due to some important partnerships. India and Finland relations are bringing mutual benefits by working together.
In this blog, we’re trying to understand how Finland sees great business chances in India. Let’s take a look at how these two countries are already connected, what’s the business scenario, and why is India a suitable place for Finnish companies to do business. It’s like a puzzle where economic, cultural, and strategic pieces come together, making Finland and India a successful team in the global business scene.
The business expansion opportunities in India
Diplomatic Bonds and Trade
India and Finland share more than just cordial diplomatic relations. Their connection is rooted in shared values of democracy, the rule of law, and a commitment to fostering innovation. Over the years, both nations have recognized the potential for economic collaboration, leading to increased trade and investment activities. India and Finland now have over $1 billion in trade, which is advantageous to Finland. Finland was the 10th largest trading partner in the EU and the 60th largest trading partner overall for India in 2016 (Ministry of Commerce & Industry, Government of
India 2017). Comparably, according to Finnish Customs (2017), India ranked as Finland’s fifth-largest trading partner in Asia and its 23rd-largest trade partner worldwide in 2016.
India’s economic landscape is dynamic and presents a vast market with diverse consumer preferences. India is one of the top five choices to seek business opportunities. This translates to many business opportunities for Finnish companies across various sectors. Whether it’s technology, renewable energy, healthcare, or education, India offers a thriving marketplace ready to embrace innovation.
India’s principal exports include
Electronic goods, mineral fuels, oils, ready-made clothing, cotton, along with its accessories, pharmaceuticals, fine chemicals, iron and steel articles, machinery and instruments, coffee, rubber, organic chemicals, nuclear reactors, boilers, machinery, mechanical appliances, and their parts.
Major items that India imports from Finland include:
Waste paper, pulp from wood or other fibrous cellulosic material, automobiles, transport equipment, boilers, machinery, mechanical appliances, paper and paper board, iron and steel, etc.
The bilateral trade between India and Finland has seen a steady rise in recent years. Finland has become a significant trade partner for India in the European Union. The exchange of goods and services and Finland’s business in India reflects a balanced and growing economic partnership.
On November 1, 2023, in New Delhi, Finland and India had their 12th Foreign Office Consultations (FOC). Shri Sanjay Verma, Secretary (West), Ministry of External Affairs, led the Indian delegation. H.E. Mr. Jukka Salovaara, Permanent State Secretary of the Finnish Ministry of Foreign Affairs, led the Finnish side.
Finland and India have close and cordial ties with frequent political and formal exchanges. The two nations have agreed to commemorate the 75th anniversary of their diplomatic relations by holding a proper celebration in 2024.
Bilateral relations, including political involvement, investment and trade, education, digital partnerships, sustainability partnerships, mobility, cultural exchanges, and people-to-people interactions, were examined during the FOC. Multilateral collaboration, encompassing the Arctic and UNSC reform, was also deliberated.
The FOC gave participants the chance to discuss topics of mutual interest, both local and global, such as the war in Ukraine and the changes around Finland and India.
The next round of Foreign Office Consultations will take place in Helsinki at a time that works for all parties.
Apart from trade, India and Finland have engaged in strategic collaborations in sectors like technology, research and development, and renewable energy. These partnerships foster a knowledge exchange that benefits both countries, creating a robust foundation for further business endeavors.
Current scenario of Finland services in India
Finland is renowned for its technological innovations, and this expertise has found a receptive audience in India. Finnish technology companies have made significant inroads, providing cutting-edge solutions in areas such as telecommunications, information technology, and artificial intelligence.
With a global focus on sustainability, Finnish companies specializing in clean and green technologies have found a burgeoning market in India. From renewable energy projects to eco-friendly solutions, Finland’s commitment to environmental stewardship aligns with India’s goals for a greener future.
Why India is Preferred Over Finland Companies?
Market Size and Diversity
One of the primary reasons Finland companies are drawn to India is the sheer size and diversity of the market. With a population exceeding a billion, India presents a vast consumer base with varied preferences and needs. This diversity allows Finnish companies to tailor their products and services to meet the specific demands of different regions.
Growing Middle Class
The burgeoning middle class in India is a crucial factor attracting Finland businesses. As disposable incomes rise, the demand for high-quality products and services increases. Finland, with its reputation for quality and innovation, is well-poised to cater to this expanding market segment.
India has been actively working towards improving its business environment, simplifying regulations, and fostering a more investor-friendly atmosphere. Finnish
companies benefit from these initiatives, experiencing smoother operations and quicker market entry.
Priority Sectors for Finland Companies
Technology and Innovation
Finland’s prowess in technology and innovation aligns seamlessly with India’s ambitions in the digital realm. Finnish tech companies can find significant opportunities to collaborate with their Indian counterparts or provide specialized solutions to meet the growing technological demands.
Healthcare and Life Sciences
The healthcare sector in India is undergoing rapid transformation, and Finland, with its advanced healthcare systems and expertise, can contribute significantly. Collaborations in medical research, technology adoption, and healthcare infrastructure development hold immense potential.
As India intensifies its focus on renewable energy, Finnish companies specializing in clean energy solutions have a unique opening. From wind energy to sustainable construction practices, Finland can play a pivotal role in India’s journey towards a greener future.
The skills and resources of India offer new opportunities for Finland companies
India boasts a vast pool of highly skilled professionals across various domains. Finnish companies can tap into this talent pool for research and development, technical expertise, and other specialized skills. Collaborative ventures can lead to innovative solutions that benefit both nations.
The cost-effectiveness of operations in India is an appealing factor for Finnish companies looking to expand their global footprint. With competitive labor costs and a supportive business environment, India provides a strategic advantage for companies seeking efficient and economical operations.
Research and Development Capabilities
India’s emphasis on education and research has resulted in a robust ecosystem for innovation. Finnish companies can leverage India’s research and development capabilities to enhance their product offerings, ensuring they stay at the forefront of technological advancements.
In conclusion, the business opportunities for Finland in India are abundant and diverse. The strong diplomatic ties, growing trade relations, and the complementary strengths of both nations create a favorable environment for collaboration. Whether it’s technology, healthcare, renewable energy, or other sectors, Finnish companies stand to gain by exploring and expanding their presence in the Indian market.
As these two nations continue to strengthen their partnership, the potential for mutually beneficial ventures is poised to grow, contributing to the global landscape of economic cooperation.
This blog is created for informational purposes. Everybody is requested to seek advice from an expert before making a decision based on the information given in the blog. Remunance disclaims any liability/loss or damage caused by using the information, directly/indirectly, given in this blog.