India- Norway Relations

GS Paper II

News Excerpt:

Norwegian businesses are showing a lot of interest in India and a manifold increase in cooperation between the two countries is expected in the next 10 years.

Historical Background:

  • Ties between Norway and India have deep historical roots. As early as the 1600s, a Danish-Norwegian trading station was established in Tranquebar (Tharangambadi), which today lies in the Indian state of Tamil Nadu. 
  • Norway’s first Consulates in India opened in Kolkata and Mumbai in 1845 and 1857, respectively. 
  • In 1952, the “India Fund” was established” to provide development assistance with a focus on fisheries. The same year, Norway opened its Embassy in New Delhi.

India-Norway cooperation for the next 10 years:

  • Norwegian businesses are showing a lot of interest in India because India is the fifth-largest and fastest-growing economy in the world.
  • The recently signed trade pact between India and the four-nation European Free Trade Association (EFTA) bloc, which includes Norway, has immense importance as it provides a secure framework for Western businesses to operate within.
  • Norway will contribute significantly to promoting investments in India, as the EFTA-India trade pact is the first trade treaty with an investment chapter.
    • EFTA countries (Iceland, Liechtenstein, Norway, and Switzerland) have committed to creating a million jobs, and Norway will contribute a considerable part of that.
  • Norway aims to strengthen relations between the governments, including with State governments in India, as well as business-to-business and people-to-people ties.
  • Norway is keen on three sectors for cooperation with India: renewable energy, maritime, and circular economy.
  • A conference on marine environment and circular economy is scheduled in Chennai, focusing on preserving the environment, including shores, rivers, and other ecosystems.
  • The conference will bring together diverse stakeholders to take forward environmental issues, 
    • Norway will share successful methodologies adopted in the coastal city of Bergen for cleaning and handling waste, leading to a significant reduction in microplastic concentration.
  • Norway is set to host the Third India-Nordic Summit by the end of this year in its capital Oslo, continuing the framework of the India-Nordic Summits previously held in Stockholm and Copenhagen.

Recent Developments:

  • The Consulate General in Mumbai re-opened its doors in 2015. It had been closed since the 1970s. 
  • In 2019, the Norwegian Prime Minister inaugurated the newly constructed and energy-efficient Embassy complex in New Delhi.
  • In December 2018, the Norwegian government launched a new ‘India Strategy’.
  • The strategy sets clear priorities for the Norwegian government until 2030 and gives renewed impetus to develop our bilateral cooperation.
  • The India Strategy outlines five thematic priorities:
    • Democracy and a rules-based world order
    • The ocean Energy, 
    • Climate and Environment, 
    • Research, 
    • higher education and global health
  • To achieve these objectives, Norway focuses on political contact and cooperation between the authorities, business cooperation, and research cooperation.

India-Norway Cooperation across Sectors:

  • Energy Sector:
    • Norway is the world's third-largest producer of gas and the seventh-largest exporter of oil.
    • Indian companies like ONGC and Reliance have tie-ups with Norwegian companies in the energy sector.
    • India stands to benefit from the drilling and exploration technologies mastered by Norwegian companies.
  • Investment and Funds:
    • Norway's $1 trillion government pension fund is one of the world's largest sovereign wealth funds.
    • It has invested close to $12 billion in India, but the Indian government wants more investments from this fund in new sectors.
    • Norway plans to invest $1 billion from its climate investment fund worldwide in five years, with a substantial part expected to be invested in India.
  • Renewable Energy:
    • Norway has shown interest in investing in solar energy infrastructure in India, considering the country's large potential for solar energy.
    • Norway is also exploring opportunities in offshore wind energy in India and is working with the National Institute of Wind Energy.
    • However, only Tamil Nadu and Gujarat have stable wind conditions suitable for viable wind energy projects.
  • Maritime and Fisheries:
    • Norway has a robust maritime industry, and India is interested in Norway's deep-sea high-value fishing technology, port development, and shipbuilding.
    • Around 30 vessels are being built in Indian shipyards for Norwegian owners.
    • Ship recycling is crucial for Norway to maintain a modern commercial fleet, both for environmental and competitive reasons. 
    • Norway is cooperating closely with India on this issue, particularly regarding India's accession to the Hong Kong Convention on ship recycling.
    • A joint working group on maritime issues between Norway and India is scheduled to meet in Mumbai to discuss topics like ship recycling, with participation from Norwegian ministries and the Norwegian Shipowners Association.
  • Trade and Investment:
    • Bilateral trade between India and Norway has doubled to $2 billion in the last two years.
    • Around 100 Norwegian companies are engaged in India, and the bilateral trade ($1,127 million) is growing steadily.
  • Academic and Cultural Cooperation:
    • Norway highlights academic relations between institutions in Tamil Nadu, such as IIT-Madras and the Institute of Wind Energy in Chennai, with institutions in Norway.
    • Norwegian company Piql is involved in creating digital archives for Indian monuments like
      • The Taj Mahal, Dholavira in Gujarat, and the Bhimbhetka Caves in Madhya Pradesh.
  • Geopolitics and Conflict Resolution:
    • Norway supports India's bid for a permanent seat in the UN Security Council.
    • Norway, home of the Nobel Peace Prize, is known to play a role in global conflict resolution.
    • Former Norwegian PM whose Kashmir visit created controversy in November, had brokered a 2002 ceasefire between the Sri Lankan government and LTTE. He heads the Oslo Centre for Peace and Human Rights.

Hong Kong International Convention:

  • The Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, 2009 (the Hong Kong Convention) aims to ensure that ships, when being recycled after reaching the end of their operational lives, do not pose any unnecessary risks to human health, safety, and the environment.
  • The Hong Kong Convention was adopted at a diplomatic conference held in Hong Kong, China, from 11 to 15 May 2009.
  • The Convention will enter into force on 26 June 2025, as the required criteria were met in June 2023: Not less than 15 States
  • Regulations in the Convention cover the design, construction, operation, and preparation of ships to facilitate safe and environmentally sound recycling of vessels, and the establishment of an appropriate enforcement mechanism for ship recycling, incorporating certification and reporting requirements. 
  • India has ratified the International Maritime Organization's (IMO) Hong Kong Convention for the Safe Recycling and Environmentally Sound of Ships.

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