PM's Europe trip: New alliances for new uncertainties, Pg13

Key Highlights:

• PM Modi is visiting Norway, the Netherlands, Sweden, and Italy to strengthen ties with Europe.
• The third India-Nordic summit will be held in Oslo on May 19, following previous summits in Stockholm (2018) and Copenhagen (2022).
• India-Nordic trade in goods and services reached $19 billion in 2024.
• PM Modi will also attend the G7 summit in France next month.
• Saab is establishing its first Carl-Gustaf manufacturing plant outside Sweden in Jhajjar, India.
• PM Modi's visit to Norway marks the first standalone bilateral visit by an Indian PM in 43 years.
• Italy is a founding member and champion of the India Middle East Europe Economic Corridor (IMEC).

Detailed Insights:

• The PM's Europe trip aims to deepen ties with a reliable European partner, especially after the India-EU Free Trade Agreement (FTA) this year, seeking investment, destinations, and technology.
• The India-Nordic summit is expected to boost Make in India investment flows and attract Nordic capital, reinforced by the India-EU FTA and the India-EFTA Trade and Economic Partnership Agreement.
• Each Nordic country offers unique strengths: Sweden in industrial innovation and defence, Denmark in maritime and green technology, Norway in blue economy and Arctic, Finland in digital technologies, and Iceland in geothermal energy.
• The Netherlands views India as a major power, with their partnership defined by "innovation meets scale," particularly in semiconductors, water, hydrogen, and maritime technology.
• Sweden has a firm stance on strategic de-risking from China and invests over 3% of GDP in R&D, ranking high on the European Innovation Scoreboard.
• Defence and maritime cooperation are key to India-Norway ties, with Indian shipyards holding 11% of the Norwegian Shipowners’ Association order book.
• IMEC is championed by Italy and will ensure supply chain stability and boost India’s energy security.

Key Concepts Involved:

• FTA (Free Trade Agreement): An agreement between two or more countries to reduce or eliminate barriers to trade, such as tariffs and quotas.
• Make in India: An initiative by the Indian government to encourage companies to manufacture their products in India.
• IMEC (India Middle East Europe Economic Corridor): A multi-modal transportation corridor project involving India, the Middle East, and Europe.