Huge Opportunities for Indo-Finnish JVs

CHENNAI: "Indian companies should come forward to leverage the Finnish technology and R&D capability in ICT innovations, healthcare, food & nutrition and environment to emerge globally competitive," said Esko Aho, President - SITRA, the Finnish National Fund for Research and Development, and former Prime Minister of Finland.

Delivering his keynote address at the India-Finland Technology and Innovation Forum, organised by Confederation of Indian Industry (CII) here today, Aho said that Finland believes in international collaboration in science and technology and singled out India to help develop flagship projects. It has earmarked 500m Euros, through SITRA, to fund technological collaborations of Finnish companies with global partners.

He said apart from the sectoral focus, the organisation has started promoting research and technology development initiatives in Russia and India. Each programme includes several development projects and activities. These involve research, training, innovative pilot projects, new business development and venture-capital investments.

Aho said that SITRA is keen to promote educational cooperation through exchange programmes involving faculties and researchers between R&D oriented institutions of India and Finland. He said that there is a huge opportunity to promote the tourism sector. He observed that the direct flight connectivity between Helsinki and Delhi would augur well for the intensified commercial and research networks between the two countries.

He said that apart from Nokia, several other globalised Finnish companies and their contractors are keen to invest in India. The Government is taking several initiatives to connect the Finnish small and medium enterprises with their Indian counterparts. It is also offering tax incentives, reductions, etc to encourage joint ventures. He said that both the governments are exploring the possibility of setting up a funding institution to fund Indo-Finnish joint ventures, jointly.

Finland is according high priority for education, which is one of the key reasons for the country's success in innovative electronic products. Thanks to the adverse climate conditions prevailing in the country, it becomes necessity for the people to turn towards technology even to fulfill their basic needs.

In his address, Veli-Pekka Saarnivaara, director general, Tekes, the Finnish Funding Agency for Technology and Innovation said that as part of the National Technology Programme, several Finnish funding agencies have been investing in research institutes, private companies to promote new concepts. The idea is to create international cooperation in promoting innovation. Currently with a budget of around 500 million Euros, Tekes is providing co-funding for over 2000 innovative, risk intensive projects, engaging world-class research and management organisations including Indian Institute of Management and CSIR. There are around 5 Indo-Finnish projects that are identified and supported by the Government and its agencies.

Tekes' mission is to boost the development of Finnish industry and the service sector by technological means and through innovation. This will renew the economy and increase value-addition, productivity and exports, thereby creating employment and enhancing well-being.

Addressing the gathering, M Velmurugan, IES, Director, Tamil Nadu Industrial Guidance & Export Promotion Bureau said that Tamil Nadu is the epicentre of knowledge. The State has around 480 technical institutions that churn out about 1,50,000 technicians annually, out of which 80,000 are engineering graduates. Thanks to the availability of skilled talent, which is the key driver attracting foreign direct investment, the multinationals are able to ramp up their employees strength at no time. For instance, Nokia, which started with 800 people, has right now increased its staff strength to around 8,000.

He said that with the global investment in electronic and IT hardware industry increasing substantially in the recent past, the State is emerging as a successful electronic cluster. The industry-friendly policies of the State government and proactive administrative support the State keeps attracting investment that goes to create a strong industry base.

Velmurugan said that the State houses around 1400 IT companies that provide job opportunities to 1,50,000 software engineers. Around 150 IT Parks are expected to come up in the State at over 60 million sq.,ft. space to employ over 6 lakh software engineers in a couple of years. He asked the Finnish companies to explore the investment opportunities in research and development and contract research in Tamil Nadu.

Delivering his opening remarks T T Ashok, chairman, Corporate Social Responsibility Sub Committee, CII Southern Region and Managing Director, Taylor Rubber Pvt Limited said that Finland is one of the world's most technologically advanced nations and a world leader in high engineering products. Finland also has strengths in mobile technology, paper and pulp while India's strength lies in engineering, auto components, textile and IT software.

Today there are over 100 Finnish companies such as Wartsila, Kone Elevators, and the well known Nokia established and actively operating in India.

He observed that the bilateral trade with Finland was at Euro 407.8 million (1:2 in favour of Finland) can be further strengthened thorough collaborative opportunities that India offers in the knowledge based industries. India offers a rare combination of relatively cost effective and skilled manpower, a pool of scientists and engineers and a fairly well developed infrastructure for business.

© CIOL Bureau