India’s Moment Is Now – A Historic Opportunity for Finnish Companies

India is no longer merely a market of the future—it is rapidly becoming one of the world’s key economic powerhouses. For Finnish companies, this represents an exceptional opportunity right now.

As the world’s most populous country, India continues to grow at an annual rate of over six percent, is building infrastructure at an unprecedented pace, and is actively seeking new international partnerships. At the same time, India is positioning itself as an alternative to China-dependent supply chains while strengthening its role as a global technology and manufacturing hub.

Finland and India are also experiencing an exceptionally active period in their bilateral relations. Prime Minister Petteri Orpo met Indian Prime Minister Narendra Modi twice during this spring. President Alexander Stubb visited India in March, and during the visit the bilateral relationship was elevated to the level of a strategic partnership. In September 2026, India is to host Sitra’s annual flagship event World Circular Economy Forum. The political message is clear: Finland and India want to deepen cooperation particularly in technology, sustainable development, digitalization, and trade.

This momentum is also reflected in the business sector. Both Prime Minister Orpo and President Stubb were accompanied by business delegations during their visits to India. Over one hundred Finnish companies already operate in India, but interest in the market is growing rapidly across Finland and Europe more broadly. Finnish strengths align exceptionally well with India’s needs.

The greatest opportunities lie in green transition, smart industry, and digital solutions. India’s energy consumption is rising rapidly, while the country seeks to reduce its dependence on fossil fuels and modernize its infrastructure. This creates demand for Finnish expertise in areas such as bioenergy, energy storage, water technology, circular economy, smart grids, and sustainable construction.

Development of manufacturing is also a national priority in India. Through its “Make in India” initiative, the country aims to attract production, investment, and new technology partners. Finnish expertise in automation, low-carbon technologies, and industrial digitalization is particularly well suited to this transformation.

India is also investing heavily in ports, logistics, maritime industries, artificial intelligence, and space technology. Meanwhile, a rapidly growing middle class is driving demand for consumer products, healthcare services, education, and digital solutions.

A significant change to the business environment is also brought by the conclusion of the EU–India Free Trade Agreement. The comprehensive agreement, finalized in February, will gradually reduce or eliminate tariffs on more than 90 percent of EU export products. Particularly significant benefits are expected for the machinery, electronics, chemicals, and services sectors. Customs procedures will be simplified, and market access for European companies is expected to improve considerably. If all goes according to schedule, the agreement could begin to take effect gradually as early as the first half of 2027.

India is not, however, an easy market. The business environment is complex, regulations can change quickly, and differences between states are still substantial. Success in India generally requires a local presence, long-term commitment, and the ability to build trust-based relationships.

The Embassy of Finland in New Delhi supports companies throughout their India market-entry and growth journey. Export promotion services are now provided through a one-stop-shop approach in cooperation with the Embassy, the Consulate General of Finland in Mumbai, Business Finland, and other Team Finland partners. Companies can receive support in areas such as market assessments, network building, government contacts, and organizing visits and business delegations.

The present moment is important for Finnish companies. Political relations between Finland and India are stronger than ever, EU–India cooperation is deepening, and India’s economy is actively seeking new international partners. In many sectors, the market is only now beginning to open up fully.

The momentum is here—and Finnish companies have a great deal to offer.

Sanna Orava

The author serves as Head of the Economic and Trade Policy Team at the Embassy of Finland in New Delhi.

Pictures: The Embassy of Finland in New Delhi