Ambassador of Denmark

Danish companies to increase presence in India

He represents a country which is said to be the second most peaceful country in the world, least corrupt and the happiest place to live --- Denmark. A meeting with the Ambassador of Denmark in New Delhi, Mr. Freddy Svane proved how friendly the people of Denmark are. He spoke about Denmark’s ties with India and how the trade ties between the two countries have become stronger in an exclusive interview to THE BLUE MOON Editor, Amit Mittal. We bring here some excerpts from the same interview :

India’s relations with Denmark started with the then Prime Minister, Jawahar Lal Nehru’s visit in 1957, but the pace was slow till the 90’s. Were there any specific reasons for this slow growth?

"Relationship cannot be measured by the number of visits, but it grows with day-to-day contacts. Today we have very close cooperation between the two countries. It was in 1962 that the first Indian envoy came to Denmark. So in 2012 we will be completing 50 years of diplomatic ties. It is today that we see the fruits of the growing relationship (between the two countries). Today we have covered a number of milestones in our ties. Our commercial ties will grow in the future too, so it is not to be measured in terms of visits – it’s a good, strong relationship."

Is it true that Denmark’s interest in India became stronger only after the visit of the Danish Prime Minister in February2008 when the India Action Plan was launched.

"This should be seen in global context. When all international trade started coming to Asia which became important, so Denmark also decided to come in at this point of globalization.

While the first Indo-Danish Joint Commission was set up in February 2008, the first high level meeting was held in December 2010 with the visit of the Danish Foreign Minister. In this gap of two years cooperation between the two appeared to have become slow. What could be the reason?

"There were a lot of efforts put into making the agenda which took time as lot of things were happening. We had to look for joint priorities. We had to synchronize the Minister’s schedule. Now we have the recipe and ingredients to grow together."

Denmark has world’s largest ten central solar heating plants and leads in new and renewable sources of energy; Are there major Danish projects in India on this subject?

"Denmark has developed clean technology; eco-friendly renewable energy started in 1970s when Denmark depended 100 per cent on fossil fuel. There was a cut on fuel expenditure that time and we decided to reduce dependence on fossil fuel. Denmark is ‘the’ country to have started building up wind power sector. India has also been given R & D for the technology. Biomass is also one of the new areas. India will have to reduce dependence on fossil fuel too. They will have to come to second generation fuel – wind power. They have 700 million tons of agricultural waste for biomass. Waste--to—energy is our motto.

What are the agreements materializing on clean environment technologies?

"We are doing a joint venture on solar energy in Chennai. Energy efficiency is the bottom line – the way energy is consumed; there should be stress on saving energy. For instance 60 per cent of all energy is spent on using pumps. Pumps should be designed for lesser consumption. Danfoss and Grundfoss are world leaders in energy efficient technology. We have agreements coming up. Offshore farms could be a solution. We are into talks on a pilot project off Gujarat shore; we will be doing that. The issue of biomass is also under consideration as Denmark is one of ‘the’ country in the world where biomass is reduced to energy. We have full scale pilot plants to convert biomass to fuel. Together with South Korea, Denmark is putting up a global green growth forum. By joining forces with India, we will be promoting green growth. We are now negotiating on biomass. Danish companies are willing to invest in this. India is an extremely important partner for Denmark. We are not just traders in India. We are creating jobs. Danish companies have created 2,50,000 jobs in India."

Danish defence firm TERMA signed a deal with Bharat Electronic Limited (BEL) for radars ; are there any more tie-ups in Defence?

"TERMA is supplying radio equipment and technology for the coast guard. There are other Danish companies working with their Indian counterparts. Our Defence companies do not produce hardware. We are into software technology. We are global players in surveillance which plays important role in combating terrorist activities. The are many important technologies that can be applied. There are about 10 to 15 Danish companies engaged in collaborations in the field of Defence. India is building technical skills in Defence. The Defence industry is also a part of our agreements."

As a result of investments promotion and protection agreement signed with India in 1995, has there been a sizeable increase in Danish investments?

"Talking about Danish companies, we see an overall increase of investment by ten to 20 times. The companies have realized that they need to invest more. India with a population of 1.2 billion, a growth rate estimated at 9 per cent and a large middle class needs large investments. There are 117 Danish companies working in India while on the other hand there are only 17 Indian companies in Denmark. There is a cement packing equipment factory coming up on 30 acres of land in Bawal, Haryana. In Chennai and Bangalore Grundfoss is making huge investments."

Denmark ranks 28th in FDI. Do Danish companies come across hurdles in investments in India?

"We have a very efficient Embassy here. If there is a problem, we meet the bureaucrats and get it sorted out. It is time consuming some times, but not difficult. I will go to any authority if there are bureaucratic hurdles."

There is not much presence of Indian companies in Denmark. Why so?

"Top Indian companies are highly globalised. Indian pharma companies have expressed interest in Denmark. I am pursuing them for investing in Denmark. The Chairman of Unita Labs of Hyderabad was in Denmark to explore possibilities of investment. We have names like Infosys and Patni already working in Denmark."

There is no visa requirement for Indians traveling on official or diplomatic passports; Is this special to Denmark or are there different rules under the Schengen Agreement?

"It is true under a bilateral agreement signed with India in 1998. For other passports one has to take a Schengen visa."

There is no direct flight between India and Denmark. Is this due to lesser interest from both the sides ?

"Some years ago SAS was operating a direct flight, but then it was closed down after a few months. We hope to see Air India fill up this gap. Even private airlines are welcome. There can be code sharing also. Air India might take Copenhagen as the new European hub. Almost 1,50,000 passengers fly from Nordic countries to India. Copenhagen will be cheaper than Frankfurt."

India exported USD 689 million worth goods in 2009 while Denmark exported USD 388 million worth goods to India. Isn’t the trade too sluggish?

"The figures are shameful. They will multiply. India is using sea freight on number two position. TORM is a shipping line in Mumbai. MAERSK is the biggest Danish company."

Compared to India, how is Denmark’s trade with China?

"Trade is far more important with China. Now the time has come for India. Danish companies have realized that China is not the only solution, we must come to India. India will catch up in coming years. we are in the middle of this process."

What is the secret behind Denmark being the most peaceful, least corrupt and the happiest country?

"Whatever left or right (ideology) the government might be, we have consensus development of the society. We all share the responsibilities of the society; our individual responsibility. We are very informal. Danes have been all over the world. In 1620 they came to India. The happiness has developed over the ages. The secret is that we are all players in the society. We share same conviction to develop a modern society. It is a strong welfare society. We pay high taxes, 25% VAT. We have free education for our children."