Minister of Trade and Industry, Mr Dag Terje Andersen

India – Norway Business Cooperation

Speech given in New Dehli on the 2 ^nd> of November 2006

Your Royal Highnesses,

Excellencies,

Distinguished guests, Ladies and Gentlemen,

It is a pleasure for me to be present at this plenary today. This event marks a significant initiative on the path to developing closer relations between our two countries. I would like to congratulate the group of organizers on this event, which I believe is the first of its kind.

India has during the past decade experienced an annual growth of about 8 percent. On a global scale this is truly impressive. Experts think that India is set to become the world’s fastest growing economy in a few years. For Norwegian companies, India is increasingly becoming a land of opportunity. This is reflected by the high number of Norwegian business representatives present here today.

Historically, trade relations between Norway and India have been modest. However, the tendency is changing. In the course of the past six years bilateral trade has increased by more than 100 per cent. The main drivers are machine and ship exports from Norway and the export of textiles from India.

During an Indo-Norwegian maritime seminar arranged in Mumbai on Tuesday on the occasion of the official visit, I was happy to note the enthusiasm and positive outlook shared by the Norwegian and Indian participants. And they have all reasons to be optimistic. Today more than 30 ships are in the pipeline or being built here in India on orders from Norwegian shipowners. And several Norwegian maritime companies have established offices in India. At the same time, Indian companies, such as Great Offshore, are buying Norwegian vessels.

I believe, however, that the potential for increased cooperation, both within the maritime and other sectors, is great!

The Norwegian government is eager to see a further strengthening of the bilateral relations with India. We are specifically encouraging an EFTA Free Trade Agreement with India as well as a bilateral maritime agreement. These agreements would increase market access and trade flows between India and Norway. Providing a strengthened framework in the bilateral trade relationship between our two countries. I hope to see progress on both of these agreements in the months ahead.

Currently about 35 Norwegian companies from a variety of sectors are present in India. One of them, Aker Kvaerner Powergas, has been operating in India for the past 40 years and is today a leading engineering and construction company in the country.

Amongst the participants here today is also the small Norwegian company EB Elektro. In many ways I believe the story of EB Elektro portrays the opportunity inherent in increased cooperation between our two countries. Two years ago the high production costs in Norway made it difficult for them to compete on the European and international market. As a result of these difficulties EB Elektro established a production cooperation in India. Today the company is attracting large contracts it otherwise would not have had a chance to get. No jobs were lost in the process. Actually, they have hired two additional employees raising the total number of employees to 13. All this was rendered possible by the cooperation with their Indian partner.

The story of EB Elektro, and others like it, truly illustrates the importance of

• innovative thinking
• adapting to a changing international arena and
• establishing contacts across national borders

In order to succeed in the global economy, companies have to look for common solutions to common problems and challenges. The seminars today will focus on the potential for increased cooperation within the energy sector, the marine sector, trade and services, culture and tourism. I feel certain that these seminars will result in many new and mutually rewarding long-term business relationships.

To conclude I would like to wish you all a very productive and inspiring seminar.

Thank you for your attention and good luck.