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India – Nordic Nations: Blue Economy And Maritime Trade – IMPRI Impact And Policy Research Institute

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India - Nordic Nations: Blue Economy and Maritime Trade

Policy Update
Asmeet Kaur

Background

India’s maritime geography and economic needs make it a global leader of an emerging blue economy that encompasses fisheries, renewable energy, sustainable shipping, biotechnology, and coastal tourism. The blue economy contributes nearly 4% of India’s GDP. With more than 95% of India’s trade (by volume) carried through sea routes, maritime sustainability is critical to India’s national interests.”

The Nordic countries (Denmark, Norway, Sweden, Finland, and Iceland) have small populations, but are leaders in ocean governance, maritime innovation technology, offshore energy, and sustainable fisheries. There are three areas driving India’s interest in collaboration with the Nordic countries:

1. Economic growth needs where the core premise is maritime trade and port modernisation.
2. Decarbonisation needs where shipping accounts for 3% of CO₂ emissions worldwide. 
3. Strategic needs where India is searching for additional reliable and rule based partners, not just major power.

The India–Nordic Leadership Summit in Copenhagen (May 2022) lays the foundation to further collaboration. Denmark offers green fuels for shipping and port innovation; Norway offers ocean energy and ocean governance; Sweden offers digitalisation; Finland contributes expertise in shipbuilding and Arctic navigation, and Iceland provides fisheries policy management. Once formalised, these nations offer India a holistic and inter-related partnership to fulfill its new maritime sustainability future.

Functioning

India–Nordic maritime cooperation is implemented through bilateral partnerships, multilateral task forces, institutional visits, and business relations.

  • Denmark: Agreed to a Green Strategic Partnership (2020), with the Centre of Excellence for Green Shipping in the pipeline. This concentrates on the alternative fuels, methanol and ammonia, for which Danish shipping champion Maersk is already a worldwide leader (PIB, 2025).
  • Norway: Co-Chairs the Task Force on Blue Economy and Sustainable Ocean Development (Maintained by India) in 2019, with a focus on sustainable fisheries, offshore wind power, and Marine spatial planning (CII,2024).
  • Sweden: Cooperates with India through innovation partnerships, in particular on AI-based logistics in ports and to digitise supply chains (Business Sweden, 2023).
  • Finland: Shares expertise in ice-class shipbuilding and clean technologies, which supports India’s shipbuilding ambitions and polar research (Embassy of Finland, 2024).
  • Iceland: Known for its quota-based fisheries management system, it engages with India to promote sustainable fishing practices (Government of Iceland, 2023).

This partnership is enabled through the Nordic embassies in India, the Confederation of Indian Industry (CII), as well as Nordic innovation councils. It is also situated in larger global frameworks like the International Maritime Organization (IMO) and the UN Sustainable Development Goals, in particular, SDG 14: Life Below Water.

Performance

In the last few years, the India-Nordic partnership on the blue economy has seen a marked acceleration. While the overall volume of trade is still moderate compared to India’s other major partners, it is characterized by high value and strong growth potential. For instance, India’s exports to the Nordic region have grown significantly, with exports to Finland and Norway alone increasing by over 100% and 80% respectively between 2018-19 and 2022-23.

  • Foreign Direct Investment (FDI): Norway has become a major foreign direct investor; its cumulative FDI in India had reached about $880 million by the end of 2024. Investments are especially seen in power generation, maritime industries, and aquaculture. Additionally, Norway’s very large public wealth fund has increased its investment in Indian equities, reflecting increased confidence in the Indian economy.
  • Port and Shipping Infrastructure: The domestic maritime industry in India has developed considerably. Under the Maritime India Vision 2030, its major port capacity has increased, and key performance metrics such as vessel turnaround time have improved. The government has fully supported green shipping initiatives, such as the Green Tug Transition Programme and the development of Green Hydrogen Hub Ports, all of which leverage Nordic experience in this area.
  • Cooperation in Green Technology: Both sides are seeing an increased interest in collective activities in areas of sustainable technologies. Conversations included concepts such as green shipping, shipbuilding, and alternative fuels such as LNG and hydrogen. India’s large shipbuilding capacity, combined with Nordic ship design knowledge, augurs well for cooperation in the development of “green” vessels. 

Impact

The increased collaboration has resulted in a range of positive outcomes. 

  • Sustainable Development: Collaboration is assisting with the incorporation of sustainability into India’s vision for economic growth. The progress made by India towards its blue economy objectives is enabled through Nordic clean technologies and best practices for the ocean, while at the same time mitigating environmental risk such as marine debris and pollution.
  • Economic Growth and Job Creation: The collaboration with industries such as offshore wind energy, aquaculture and maritime logistics is creating business opportunities and jobs in both economies. Indian businesses are solidifying their presence in the Nordic region, particularly in IT and pharmaceuticals, while Nordics, including firms such as Volvo and Ericsson have robust operational presence in India.
  • Innovation and Technology Transfer: The partnership creates an avenue for transferring advanced technologies and expertise, especially in marine biotechnology, the digital management of ports, and data-based ocean science, which is so essential for India’s goal of developing a technologically advanced maritime nation.
  • Strategic Alignment: In addition to economic benefits, the partnership enhances the strategic partnership between India and the Nordic countries. Both India and the Nordic region share concerns about global issues such as climate change and the need for a rules-based order: this is the basis for diplomatic and security partnership including the Arctic.

Emerging Issues

In spite of the favorable trends, a few challenges and promising issues need to be dealt with to guarantee the partnership’s enduring success.

  • Regulatory Difficulties: Disparities in regulatory environments and business practices may occasionally present hurdles to frictionless cooperation. The EFTA-India TEPA and other treaties aim will help ease these, but challenges associated with public procurement, standards of quality, and compliance will need to be worked through.
  • Geopolitical Obligation: The wider geopolitical picture, particularly with respect to the ongoing Russia-Ukraine situation and its influence on European security, may make relations more complicated. Whereas the Nordic countries have taken a strong position against Russia, India has maintained its position of strategic autonomy in certain cases.
  • Funding and Scalability: Even though there is political will and interest, bringing large projects to fruition is expensive. A critical barrier remains attracting and mobilizing sovereign wealth funds for large infrastructure projects in India’s blue economy, as well as private capital for the large technology projects. 
  • Capacity Building: India must develop its domestic capacity in advanced marine technologies and research to leverage the full benefits of the partnership. This encompasses building a workforce and developing its research and development ecosystem in ocean science and engineering.

Way Forward

For a sound, actionable agenda to advance a strategic India-Nordic blue economy and maritime trade partnership, a refreshed approach is needed. 

  • Strengthening Policy Dialogue: The partnership means regular high-level policy dialogue and ministerial discussions to tackle ongoing challenges and align strategic priorities. Further, a robust policy relationship may provide opportunities to quickly address regulatory and bureaucratic bottlenecks.
  • Focusing on Particular High-Impact Lines: The partnership should take shape in a few areas which intuitively have strong synergy and potential to make an impact. Green shipping is one possibility as India can leverage its shipbuilding capacity to co-produce eco-friendly vessels with Nordic design attributes. Offshore wind energy is another area, where Denmark’s leadership in offshore wind energy would add value.
  • Building a Joint Research and Innovation Partnership: Both sides should increase funding for collaborative research and innovation initiatives, especially in areas like marine biotechnology, sustainable aquaculture, and Arctic research so that it can generate new knowledge as well as business opportunities.
  • Fostering Public-Private Partnerships: Governments can engage actively in making connections among private sectors. For instance, a proposed ‘startup bridge’ between Indian tech startups and Nordic businesses can be facilitated. Then, the forthcoming India Maritime Week, and similar events, can play a major role.
  • Fostering People-to-People Ties: Lastly, fostering people-to-people ties through academic exchange, skill programs, and tourism can also establish a solid basis of trust and understanding, which is central towards any long term strategic partnership.

The India-Nordic partnership on the blue economy is an excellent case study on how two different parts of the world can blend their strengths to find solutions to global challenges and contribute towards a more prosperous and sustainable future. In these efforts, with shared commitment and a clear path forward, the partnership can thrive further, and be an edge towards regular maritime sustainable development globally.

References

About the Author: Asmeet Kaur is a researcher at IMPRI and an undergraduate student at Indraprastha College for Women, Delhi University, with a keen interest in Public policy and administration.

Acknowledgement: The author sincerely thanks the whole IMPRI team for their valuable support. 

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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