History
The connection between Denmark and India dates back to the early 17th century, when Tranquebar, located on the southeastern coast of India in Tamil Nadu, was established as a Danish colony. Tranquebar flourished for over two centuries, from 1620 to 1845, serving as a significant trading post for the Danes in the region. The name Tranquebar derives from the Tamil word Tarangambadi, which translates to "place of the singing waves," reflecting the town's picturesque coastal setting. Additionally, the Danish settlement in Serampore, situated in present-day West Bengal, became another important outpost for Denmark until its transfer to British control alongside Tranquebar in 1845. Denmark’s colonial interests extended to the Nicobar Islands, which were also governed until their sale to Great Britain in 1868.
Following India’s independence in 1947, the foundation for modern bilateral relations between India and Denmark was laid during Indian Prime Minister Jawaharlal Nehru's visit to Denmark in 1957. This visit marked a significant turning point in diplomatic relations, fostering a spirit of cooperation that has persisted in subsequent decades. Since then, the relationship between the two nations has developed into a robust partnership characterized by warmth and mutual respect. The collaboration spans various domains, including political diplomacy, economic trade, academic exchanges, and scientific research, highlighting the diverse interests that bind the two countries together.
Over the years, there have been numerous high-level visits and exchanges of delegations between Denmark and India, further solidifying their friendship. These visits have facilitated dialogues on various pressing issues, including sustainable development, renewable energy, and climate change—a reflection of both nations' commitment to addressing global challenges. The countries have been involved in numerous collaborative projects, particularly in areas like green technology and urban development, showcasing their shared vision for a sustainable future. As both countries continue to promote trade and investment ties, their relationship is poised to grow deeper and more multifaceted, benefiting from shared cultural ties and mutual interests.
Visits
The Denmark-India relationship has been marked by significant state visits that foster cooperation and strengthen diplomatic ties. One notable visit was made by Anders Fogh Rasmussen, the former Prime Minister of Denmark, from February 4–8, 2008. He led a large business delegation aimed at enhancing bilateral relations. During his visit, Rasmussen toured important establishments such as Infosys, Biocon, and the Indian Institute of Management (IIM) Bangalore, and he also took the opportunity to visit the iconic Taj Mahal in Agra. During this trip, he unveiled an ‘India Action Plan’ which focused on fortifying political dialogues, boosting trade and investment partnerships, and promoting research and collaboration in fields like science and technology, energy, climate change, and education. The signing of an Agreement for the establishment of a Bilateral Joint Commission for Cooperation during this visit laid the groundwork for more structured collaboration between the two nations.
Another significant visitation occurred from October 9–11, 2021, when H.E. Ms. Mette Frederiksen, the Prime Minister of Denmark, made her state visit to India, marking a crucial diplomatic milestone as it was the first visit by a head of government to India post-COVID-19 pandemic. The visit was characterized by warm and productive bilateral talks with Indian Prime Minister Narendra Modi, highlighting the close partnership that Denmark and India share. The discussions primarily revolved around the Green Strategic Partnership, which was initially established during a virtual summit in September 2020. This framework aims at enhancing cooperation in sustainable development and climate action.
During her state visit, Prime Minister Frederiksen not only held pivotal discussions but also immersed herself in India’s rich cultural heritage through visits to Agra and the Garvi Gujarat Bhavan. A key moment of her trip was a special address at the Observer Research Foundation, where she emphasized the significance of the Green Strategic Partnership and the pressing need for close collaboration between nations to combat climate change effectively. The engagements during her visit reinforced Denmark’s commitment to working alongside India towards sustainable development goals and enhancing mutual cultural appreciation.
Purulia Case: Background and Diplomatic Implications
In July 2012, a significant diplomatic strain emerged between India and Denmark, primarily resulting from Denmark's handling of the Purulia arms drop case. This case dates back to 1995 when an aircraft reportedly owned by Kim Davy, also known as Niels Holck, dropped arms in the Purulia district of West Bengal, India. These arms were allegedly intended for rebel groups, raising serious concerns regarding regional security and the ideals of rule of law. Consequently, India's government sought Davy's extradition, emphasizing the need to uphold justice and accountability for the actions that transpired.
The situation escalated when Denmark's Supreme Court declined to hear an appeal regarding the lower court's decision that had refused India's extradition request. The Indian government faced a considerable setback as repeated appeals to the Danish government went unheeded. Discontented with Denmark's alleged inaction, which was perceived as a disregard for India's extradition request and a failure to cooperate in a matter of significant national importance, India decided to retaliate diplomatically. It issued a directive for senior officials to refrain from meeting or engaging with Danish diplomats stationed in India. This move highlighted the severity with which India viewed the situation, marking a low point in bilateral relations.
Both governments recognized the importance of maintaining diplomatic channels despite the tensions surrounding the Purulia arms drop case. The incident underscored the complexities involved in international law, extradition treaties, and the challenges posed when national judgments intersect with international relations. Efforts to reinvigorate diplomatic dialogue have been ongoing, with both Denmark and India keenly aware that fostering a healthy partnership is critical for cooperation in various sectors including trade, culture, and technology.
Moving forward from the Purulia case, both nations have demonstrated a willingness to engage with each other on multiple fronts, emphasizing diplomacy as a crucial tool for resolution. In addition to traditional diplomatic channels, enhanced communication regarding legal matters and the establishment of formal protocols could facilitate smoother interactions in the future. Thus, while the Purulia arms drop case remains a contentious chapter in Denmark-India relations, both countries are likely to work towards a more collaborative partnership moving ahead, focusing on mutual interests rather than past conflicts.
Investments
Denmark has steadily established its presence as a foreign investor in India, currently ranking 26th among countries investing in the Indian market. This ranking reflects a growing interest from Danish companies in various sectors of the Indian economy. The positive trajectory of investments is significant, particularly given the liberalization of the Indian economy and the government's initiatives to facilitate foreign direct investment (FDI).
In the years 2008 and 2009, Danish direct investments in India amounted to US$ 57 million and US$ 75 million, respectively. These figures indicate a gradual increase in investments, signaling the confidence that Danish investors have in India’s economic landscape. The sectors attracting such investments have included renewable energy, biotechnology, engineering, and information technology, among others. Danish firms are particularly known for their expertise in wind energy and clean technologies, aligning well with India's focus on sustainable development.
The bilateral economic relationship continues to be reinforced by the government’s efforts to create a favorable investment climate, including simplifying regulatory processes and enhancing infrastructure. Additionally, the two countries have been engaging in various trade agreements and cooperative initiatives aimed at fostering deeper economic ties. Denmark, with its high standards for environmental sustainability and innovation, has the potential to play a pivotal role in supporting India's aspirations for a greener economy. This mutually beneficial relationship not only enhances economic growth but also promotes cultural exchange and understanding between the two nations.
As Denmark seeks to further increase its investments in India, both governments are likely to explore additional avenues of collaboration, particularly in areas like technology transfer and joint ventures. The long-term prospects for Danish investments in India look promising as both countries continue to deepen their ties through trade and investment opportunities.
Agreements - Important Bilateral Treaties and Agreements
The relationship between Denmark and India has been solidified through various treaties and agreements aimed at fostering cooperation across multiple sectors. One of the earliest agreements, the Technical Cooperation Agreement signed in 1970, laid the groundwork for continued collaboration in technological development and capacity building. This initial partnership has evolved over the years to encompass a diverse array of fields, including fisheries, investment, and tax regulation.
In 1981, a significant Bilateral Agreement focused on an Integrated Fisheries Project in Tadri, Karnataka, was established. This agreement aimed to enhance India's fishing industry and promote sustainable practices in marine resource management. Following this, the Bilateral Investment Promotion and Protection Agreement signed in 1995 was a key step in encouraging foreign investments by providing a legal framework to protect investments made by investors from both countries. Similarly, the Protocol on Avoidance of Double Taxation, also signed in 1995, was crucial for eliminating the issue of double taxation on income, thus promoting economic activity by ensuring fair taxation practices.
The collaboration continued to expand with several MoUs targeting specific areas of mutual interest. The Memorandum of Understanding (MoU) between the Confederation of Indian Industry (CII) and the Confederation of Danish Industries in 1995 facilitated business exchanges and strengthened economic ties. The Joint Business Council Agreement between the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Danish Industry in 2002 further promoted cooperation in economic activities and trade relations, fostering a robust business environment.
Sustainability became a focal point for both nations with the signing of the MoU on Biotechnology for Bilateral Cooperation in 2004, aiming to enhance research and innovation in the biotech sector, which both countries recognized as essential for sustainable development. The MoU on the Clean Development Mechanism in 2008 and the subsequent 2009 agreement focused on cooperation in environmental matters underscored their shared commitment to addressing climate change through sustainable practices and collaborative initiatives.
In terms of labor relations and social security, the MoU on Labour Mobility Partnership, established in 2009, was designed to facilitate the migration of skilled workers between the two countries, allowing for a smoother transition and greater labor exchanges. This was complemented by the Social Security Agreement signed in 2010, which provided comprehensive social security benefits for Danish citizens in India and Indian citizens in Denmark, reflecting a commitment to safeguarding the welfare of their respective nationals.
Overall, these agreements not only mark a timeline of progressive interaction between Denmark and India but also represent a commitment to strengthening the bilateral relationship by addressing contemporary issues of technology, economy, environment, and social welfare. The ongoing dialogue and collaboration set a positive foundation for future engagements in various sectors, ensuring that both nations can benefit from shared knowledge and resources.