The Hindu Business Line : India, Finland see potential to widen economic ties

Boosting trade: The Minister for Commerce and Industry, Mr Kamal Nath, and Finland’s Minister for Foreign Trade & Development, Dr Paavo Vayrynen, at a bilateral meeting in the Capital on Friday.

Our Bureau

New Delhi, Feb. 6 India and Finland will encourage businesses to explore new areas and sectors so as to widen and deepen the trade basket. This was agreed at a bilateral meeting between the Commerce and Industry Minister, Mr Kamal Nath, and the visiting Finland Minister for Foreign Trade & Development, Dr Paavo Vayrynen, here on Friday.

Both the sides felt that bilateral trade and investments between Finland and India were growing and that there was lot of potential for developing these economic relations further.

The Ministers noted that the possible areas for bilateral cooperation include energy, environment, forestry, IT, civil aviation, science and technology and tourism. India-Finland bilateral trade has more than doubled from $533 million in 2004-05 to $1,165 million during 2007-08.

Major exports to Finland are readymade garments (cotton), manufactures of metals, drugs & pharmaceuticals, coffee, transport equipment while major imports from Finland are electronic goods, computer software, iron and steel and paper board.

Dr Paavo said that the direct flight connections of Finnair, which started in 2006, have stimulated tourism and a lot of new contacts between the two countries and their people.

Interacting with the Finnish Minister, Mr Nath said that India had a vibrant SME sector. The engagement by SMEs on both sides would strengthen the foundations of trade relationship, he added.

Both the Ministers agreed on a need for fast results in the WTO Doha Round, especially in the current economic situation. Mr Nath emphasised that India would remain committed to engage constructively to reach a fair and balanced outcome of the Doha Round of WTO negotiations.

The cumulative FDI inflows during 1991 to 2008 were $74.4 million. The top sectors attracting FDI inflows from Finland are fuels (power & oil refinery), telecommunications, electrical equipment, paper & pulp and services sector.

Meanwhile, speaking to reporters on the sidelines of the bilateral meeting, Mr Nath said that the Reserve Bank of India would continue to take more (monetary) measures, but they will have to be calibrated.

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