India, Norway and the Blue Economy

Norwegian prime minister Erna Solberg’s visit to India earlier this week had a central focus: strengthening economic and technological cooperation in the Blue Economy. This is an area in which her country has considerable expertise and with which Indian business needs to collaborate in managing industries, such as oil, shipping, fisheries and aquaculture in a ‘green’ way.

The visit to Delhi this week by Erna Solberg, Prime Minister of Norway, was unusual: she kept to her official programme of discussions with Prime Minister Narendra Modi, but her principal focus was on deepening economic and technological cooperation in the Blue Economy.

A nation of 5.3 million people with per capita income of $83,000, Norway is a leader not only in enlightened governance at home, but also in shaping global thinking and policy formulation on ocean management. It has harnessed the benefits of the Blue Economy through judicious use of 21st-century technologies. Oceans produce goods and services worth $2.5 trillion each year, which is expected to double by 2030. Norwegian experts have been saying that the Blue Economy has huge potential for meeting the world’s need for resources, creating jobs and accelerating socio-economic development, but this goal is achievable only through sustainable growth in ocean industries and vastly enhanced international cooperation.

Last September, Prime Minister Solberg created an international panel of 12 heads of government and the UN
secretary general’s special envoy for the Oceans, which has been tasked with devising:

measures to save the oceans from pollution, overfishing, microplastics, rising sea temperatures and coral bleaching; and
an integrated ocean management regime that allows marine industries viz. fishing, shipping, transportation, energy generation, tourism, mining and biotechnology to grow for the benefit of humankind. Its recommendations will be presented at a conference in Oslo in October 2019.

“We are dependent on a clean and healthy ocean, and all use of marine resources must be sustainable,” the
Norwegian prime minister said.

India is not a member of this high-level panel on oceans, but the PM’s visit witnessed close interaction between officials, experts and business leaders and joint projects may result in mutually beneficial knowledge-based ocean management models.

Indian business is likely to monitor the new India-Norway dialogue for its focus on innovations, governance and incentives for robust economic development, while simultaneously improving and safeguarding the health of the oceans. Indian companies should consider participating in a special programme to combat marine litter that has the support of a Norwegian grant of NOK 150 million ($17.6 million). This has recently been increased to $200 million for the next four-year period. They will also be keen to collaborate with Norwegian expertise in managing industries such as oil, gas, shipping and offshore as also fisheries and aquaculture in a ‘green’ way. For example, Norwegian technology for on-board processing and packaging of fish and its instant transportation could be valuable for India.

In the backdrop of a steady increase in trade, investments and transfer of technology, promising possibilities exist for future growth not only in the Blue Economy sectors, but also in hydropower, IT services, mobile connectivity, light consumer goods and investment in Indian start-ups. Nearly 100 Norwegian companiesare active in India. More corporate players are showing interest, as was evident from the well-attended dialogue at the India- Norway Business Summit 2019, held in Delhi on January 7 to coincide with the Norwegian’s PM’s visit. B-to-B
level discussions revealed ample complementarities in green shipping (battery-operated or LNG-run vessels), sustainable seafood production and wind energy, besides cooperation in the defence and space sectors.

This was followed the next day (January 8) by three important developments:

The two governments signed an MoU on Ocean Dialogue and the establishment of a joint task force “to promote
multi-sectoral cooperation in various aspects of Blue Economy.”

At the first meeting of the joint task force in Delhi, participants discussed areas of possible collaboration in integrated ocean management, curbing marine litter and maritime and marine sectors in general.

PM Solberg delivered the inaugural address at the Raisina Dialogue when she urged India to work together for the sustainable development of ocean resources.

Bilateral trade hovers around $1.2 billion (which is the actual figure for 2017-2018), showing a significant increase over $974 million in 2013-2014. The Norwegian pension fund- the Government Pension Fund Global (GPFG), the second largest in the world, has invested $12 billion in India, and can invest more.

Norway was one of the five countries that participated in the India-Nordic Summit, held last April in Stockholm. This first-ever dialogue demonstrated the convergence among participants on the “key issues related to global security, economic growth, innovation and climate change”.
Prime Minister Solberg’s visit to India was thus a significant step in the right direction. Many more may be needed to consolidate its initial gains.