Context

Indian Prime Minister visited Denmark with its counterpart. During the visit, both the nations have signed 9 documents to enhance the bilateral relations. While the summit covered a wide array of issues, the Green Strategic Partnership remains the central new agreement in this budding bilateral relationship.

Background

• India and Denmark already have strong trade and investment ties, with more than 200 Danish companies present in India and over 60 Indian companies present in Denmark, but the Partnership is broadening and deepening the India-Denmark relationship, especially in sustainable development.
• Historically, the relationship between these countries has actually been somewhat tense, in particular thanks for the saga of a Danish citizen being accusedof a massive arms drop in Purulia, West Bengal in 1995.
• Since then, India repeatedly tried to get him extradited, and even came close, until the Danish Supreme Court stayed the order – claimingthere was a risk of him being tortured in India – in 2011.
• This triggered a diplomatic crisis between two countries which hammered economic relations.
• But since then, there have been joint diplomatic engagements leading to improved terms between the two countries – culminating with the Green Strategic Partnership.
• Green Strategic Partnership is a chance for India to accelerate its partnership with Denmark and broaden it to cooperation in other areas.

Analysis

• The two PMs reviewed the bilateral Green Strategic Partnership between their two nations and decided to ramp up trade ties and cooperation in green energy and combating climate change.
• The two nations signing nine pacts in diverse fields such as
  • Migration and mobility
  • Cultural ties
  • Shipping
  • Fisheries, Animal husbandry and Dairy
  • Skill development
  • Start ups
  • Water management
  • Energy policy
  • Health and biotechnology

 

Soft power and People to People contact.

• Both the Prime Ministers have agreed to enhance the people to people contact and improve cultural ties.
• Both nations have welcomed the signing of a new Cultural Exchange Program.
• Declaration of Intent (DoI) on Migration and Mobility has been introduced during the visit to Denmark.

Trade and investments:

• The two Prime Ministers underlined the importance of bilateral trade and investments and stressed the need to maximize the potential of economic ties between the two countries.
• To ensure economic security and prosperity of the people two nations have emphasized on robust bilateral investment through diversified, resilient, transparent, open, secure and predictable global supply chains.
• Indian Green Finance Initiative has been launched to finance the India’s green projects to accelerate green growth and job creation.
• Both the nations have also signed a Letter of Intent (LoI) in green shipping.
• In order to diversify the rural economy two countries welcomed the step to sign JointDeclaration of Intent (JDI) on Cooperation in the fields of Animal Husbandry and Dairying.

Climate change:

• At the climate change front, both have launched a new green climate initiative, India’s GreenFinance Initiative to finance Indian green project to enhance the green growth and job creation.
• Collaboration in the fields of urban and rural water supply, groundwater mapping, wastewater management, river rejuvenation and digitalization.
• Launch of Energy Policy Dialogue at Ministerial level has been proposed by both the nations to collaborate at climate front.
• Letter of Intent (LoI) of between Ministry of Jal Shakti and Ministry of Environment of Denmark has been introduced to develop waste water management system.

Health and bio technology:

• The two sides confirmed their continued collaboration in the field of antimicrobial resistance. India conveyed its acceptance of the Danish invitation to join the International Center for Antimicrobial Resistance Solutions (ICARS) as Mission Partner.
• Global Digital Health Partnership on India’s invitation to improve public health and well-being through evidence-based digital technologies.

How these agreements can benefit India?

• Energy sector: Initiatives on green and clean energy could reduce the dependency on fossil fuels and can enhance the production of hydrogen fuel and energy security through renewable energy.
• Demography: Health management and skill development as promised y the both the nations will enhance knowledge exchanges which have the potential to build up a better condition for demographic dividend.
• Climate change and environment: India’s’ hurdle for waste management system and water management system could be reduced with the help Danish initiatives. Swacch Bharat mission could get a boost and could ensure clean environment for all.
• Health sector: Diversification of health supply chain and medicinal requirement could reduce the threat for future supply chain shocks and reduce the dependency on a single supplier.
• Supply chain blockades: Both have agreed to diversify the supply chain system to prevent the future shock in the trade and business and economic disruptions.

What India should focus to improve the bilateral ties?

• Demographic development: To utilize the fruits of the new relation India should focus on its demographic development for better health educational facilities.
• Trade barriers: India should also revisit the regulation on trade barriers and ensure proper inflow of foreign trade along with protecting the interests of the domestic producers.
• Agricultural and Primary Infrastructure: In order to secure the economic security of the rural households India should develop its agricultural infrastructure like post-harvest management along with proper port accessibility to all the produces and improved transportation system and cold storage system.
• Aatmanirbhar: To maintain the trade balance between the countries India should focus on its Self-Dependency and actively engage in World trade.
• Ayurveda and Alternate medicines: India should work on conventional medicines and develop infrastructure for alternate medicines to diversify the medical and pharmaceutical sector.

Conclusion

Recent visit of Indian Prime Minister to Denmark has initiated a new chapter not only in the bilateral relations of the two nations but also at multilateral fronts. Green initiatives and improvement in trade relation along with promotion of startups will give a push in the field of green and renewable energy and reduce the dependency on fossils fuels. Collaboration at various dimensions will diversify the supply chain system which can be more predictable and reliable.

PRACTICE QUESTION Q1. Green Strategic Partnership between India and Denmark will help in delivering sustainable solutions to various challenges faced by India. Q2. India-Denmark partnership can work as a launch pad for India to strengthen its ties with other Nordic countries. Elucidate.