India-Finland Partnership for a Sustainable Future

On December 6, 1983, amid the biting winds of the Southern Ocean, a symbolic ceremony took place aboard the Finnish icebreaker Finnpolaris. A Finnish crew member, dressed as the mythical sea god Neptune, presented baptism certificates to 81 Indian scientists and support staff en route to Antarctica to establish India’s first scientific station. As the ship crossed the Equator—marking a maritime rite of passage dating back to the 16th century—it also hosted a unique diplomatic moment: Indians and Finns celebrating Finnish Independence Day together at sea. This lesser-known event captures the spirit of collaboration and mutual respect that has long defined India–Finland relations.

The collaboration between India and Finland, which celebrated 75 years of diplomatic ties in 2024, is exemplified by their joint effort in establishing India’s first permanent scientific station, Dakshin Gangotri, in Antarctica in 1984. At a time when only a handful of countries had ventured into the icy expanse of the southern continent, India’s vision to establish a permanent presence was both bold and pioneering. Finland’s technical support and logistical partnership were instrumental in turning this aspiration into reality, laying the foundation for a proud chapter in India’s scientific and polar exploration history.

India views Finland as a leading technological powerhouse, a perception reinforced by the substantial contributions of Finnish companies such as Nokia, Wärtsilä, Kone, Lindström, and others in advancing India’s development goals and supporting the aspirations of its people. The presence of a 30,000-strong Indian diaspora—including presence of top Indian IT firms—within Finland’s vibrant tech ecosystem has further deepened bilateral ties. This dynamic partnership is underscored by a robust annual trade of approximately €3 billion and growing collaboration to address shared global and technological challenges.

As India faces the escalating impacts of climate change and advances its ambitious goal of achieving carbon neutrality by 2070, its partnership with Finland has taken on renewed strategic importance. With major investments in reducing its carbon footprint, India is leading a transformative energy transition—driving change across transportation, energy production, and resource management.

Electrifying Transportation

The rapid rise of electric vehicles (EV) in India serves dual purposes: reducing environmental pollution while enhancing energy security. With an ambitious target to become the world's largest EV market by 2030—when 30% of all vehicle sales should be electric—the government has created robust support mechanisms. The complementary FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) and PLI (Production Linked Incentives) schemes provide financial subsidies from different angles: FAME accelerates adoption and expands charging networks, while PLI strengthens domestic manufacturing capabilities for vehicles, batteries, and components.

These strategic investments are already yielding impressive results. EV sales have surged tenfold from just 0.8% of all vehicles in 2020 to 8% in 2024, putting more than 5.7 million electric vehicles on Indian roads.

Diversifying Clean Energy Sources

Beyond transportation, India is making bold moves to revolutionize its energy production landscape. In January 2024, the country launched the National Green Hydrogen Mission with a substantial $2.5 billion allocation. This initiative positions India competitively in the emerging hydrogen economy by focusing on production, domestic utilization, and eventual export of green hydrogen.

Complementing this, February 2025 saw the introduction of the Nuclear Energy Mission, with an equal $2.5 billion investment dedicated to research and development of Small Modular Reactors (SMR)—a safer, more cost-effective nuclear technology. These initiatives build upon existing progress, with approximately 200 GW of clean energy capacity already installed toward India's ambitious 2030 target of 500 GW from non-fossil sources, including solar, wind, hydro, and nuclear power. To manage the integration challenges of intermittent renewable energy, India is simultaneously investing in advanced grid stabilization technologies.

Embracing Circular Economy Principles

India’s sustainability vision includes a strong focus on circular economy principles, aiming to rethink resource use and address challenges such as plastic and electronic waste, battery recycling, and extended producer responsibility. Supportive regulations are complemented by targeted initiatives promoting circular business models in key sectors like construction, textiles, and electronics. India’s commitment to the 3Rs—Reduce, Reuse, Recycle—is further underscored by its decision to host the World Circular Economy Forum 2026 in New Delhi, in partnership with Finland.

Conclusion: A Partnership for Global Impact

The India-Finland partnership—reinforced by broader strategic frameworks such as the India-EU and Nordic collaborations—demonstrates how international alliances can accelerate global sustainability efforts. By combining Finland’s technological strengths with India’s large-scale implementation capabilities, the two nations are creating scalable models for sustainable development. Their growing cooperation through knowledge sharing, and joint ventures reflects how countries at different stages of development can effectively address common environmental challenges. This multifaceted collaboration is paving the way for a more resilient, low-carbon future while creating economic opportunities and enhancing quality of life.

Ambassador Hemant H. Kotalwar.
March 2025

AsiaAnne HATANPÄÄIndia