Finland is reinforcing its presence in India’s technology landscape with a message: it can offer secure alternatives to Chinese technology while bringing advanced industrial and clean energy solutions.
In a conversation with ET Online, Finland’s Ambassador to India, Kimmo Lähdevirta, discussed bilateral trade ties, why India matters to the European nation, and how Helsinki envisions deeper collaboration in the subcontinent through the proposed India-EU FTA.
He said digitalisation, education, sustainability and innovation hold significant potential, and that Finnish expertise can help India scale up its infrastructure, reduce carbon footprints, and strengthen critical systems.
“Digitalisation, education, sustainability, and innovation: I would say that those areas have the best potential for, well, mutually beneficial trade, I would say. And I think clean transition is a very, very big issue that has a lot of potential because Finland has very good technology and know-how in that sector,” said Lähdevirta.
Replacing Chinese tech
“India does not want to rely on Chinese technology in sensitive areas. Finnish companies like Nokia can provide reliable alternatives for India in crucial sectors,” the Ambassador told ET Online.
He described Nokia’s Bangalore R&D center, which focuses on telecom and digital technology development including 5G base stations, as “very impressive,” noting that the company’s operations in India extend beyond its former handsets business.
Nokia is one of India's largest international telecom infrastructure manufacturers, and is expanding its footprint in the country, with a focus on local talent and research.
“We are going to hire more people in our R&D centre. Other than the R&D centre of about 8,000 people, we have around 4,000 people who are supporting all global service operations from India. It means there is a huge opportunity,” said Nokia India Country Manager Tarun Chhabra at an event last month.
He added, “When I talk to telecom operators around the world, they talk about cyber security as the most important thing now. I would say we are committed for 30 years, and we further commit that we are going to play a very important role in skilling the Indian people here, and then hiring them in our R&D centers in the future.”
A big China problem for India
India’s push for alternatives to Chinese technology is shaping its telecom and digital strategies, and Finnish companies can play a key role in providing secure, high-quality solutions while deepening bilateral trade and technological cooperation.
Dependence on Chinese technology has also created vulnerabilities in critical sectors, with Beijing tightening control over what it allows Indian companies to access. According to an Economic Times report, several Indian firms have seen technology transfer deals delayed because of new scrutiny from Chinese authorities, including in electronics, appliances and electric vehicles.
Industry executives told ET that Chinese companies have received “verbal” instructions to hold back or slow approvals for overseas technology-sharing agreements, particularly those involving mid- to large-sized firms.
This has left Indian manufacturers exposed to bottlenecks, with projects in components and EV technology pushed back due to Chinese approvals. Executives described the policy as Beijing using its “trump card” to retain an edge and negotiate from a position of strength — much like its control over rare earth supplies in the US.
For India, where sectors from telecom to auto components remain highly reliant on Chinese inputs, these delays reveal the strategic importance of diversification.
Industrial edge: What Finland brings to the table
Finland is positioning itself as a key partner in India's journey toward sustainable industrial growth and energy resilience, according to Ambassador Lähdevirta.
“Energy is another big sector where we already have big Finnish companies like Wärtsilä and Valmet operating here. And also, let's say technology related to biofuels, for example, has very good potential,” he told ET Online.
“We have sectors like maritime technology as well where we have companies like Wärtsilä, which is very big in that sector. But also, for example, on the environmental side, companies called LAMOR to deal with oil spills, for example, and other environmental issues,” he added.
Finland’s strength lies in industrial goods and services, particularly in areas like maritime engines and power generation technologies. Wärtsilä, a company specialising in next-generation engines that utilise advanced fuels, is a prominent example. These engines are designed for both maritime and land-based power generation, addressing India’s growing electricity needs.
“Things that have to do with making the grid smarter are very important. Finland has good technologies in that area,” the Ambassador said.
Finland is also at the forefront of developing sustainable fuels, particularly second-generation biofuels derived from non-edible materials. Lähdevirta noted that Helsinki has been introducing this technology to India, aiming to support the country’s clean energy transition. “Finland is really very advanced in developing biofuels from all kinds of materials... especially second-generation biofuels made of non-edible materials.”
With India’s rapid urbanisation, Finland also sees opportunities in construction technology. Companies like KONE, which manufactures elevators and escalators, are already present in the market. Ambassador Lähdevirta highlighted how Finnish firms are helping reduce the carbon footprint of construction, pointing to the country’s long tradition in precast building technology. He cited Elematic, a Finnish company producing precast elements, and recalled a visit to a major construction site in Hyderabad: “It was interesting to see how fast and how efficiently they were actually building.”
Innovation remains a cross-cutting theme in Finland’s India strategy. Finnish authorities have been working to build cooperation with startups and other innovative companies, bringing them to Finland for events like Slush. “We have seen some very good examples of Finnish software companies coming to India and really scaling up their businesses here,” he noted.
India-EU FTA: ‘A lot of work needs to be done’
The economic relationship between Finland and India is on a solid footing, according to Ambassador Lähdevirta.
“It is now some 3 billion euros in both directions, meaning exports and imports of both goods and services. And then we have some, let's say, 4 billion euros of cumulative investments from Finland to India and some 1 billion euros from India to Finland. So that's a very good basis,” he said.
He added that while the trajectory is positive, India is sometimes “overlooked” by Finnish businesses.
To bridge this gap, Finland hosted an India Roadshow in September 2025 with the Indian Embassy in Helsinki and Business Finland to raise awareness among local firms.
“I think we still need more of this sort of awareness, let's say, raising, so that both partners really see the benefits that the other one can bring,” he noted.
On the proposed India–EU Free Trade Agreement, Lähdevirta struck an optimistic but cautious tone.
“Well, we strongly support it and we really hope that both parties can reach a deal by the end of this year. I think it would really be beneficial and important for both sides and especially in the present situation where there's so much, let's say, uncertainty in the world,” he said.
At the same time, he added, “quite a lot of work is still needed before a deal can be reached,” and declined to predict whether it could realistically be done this year.
In a conversation with ET Online, Finland’s Ambassador to India, Kimmo Lähdevirta, discussed bilateral trade ties, why India matters to the European nation, and how Helsinki envisions deeper collaboration in the subcontinent through the proposed India-EU FTA.
He said digitalisation, education, sustainability and innovation hold significant potential, and that Finnish expertise can help India scale up its infrastructure, reduce carbon footprints, and strengthen critical systems.
“Digitalisation, education, sustainability, and innovation: I would say that those areas have the best potential for, well, mutually beneficial trade, I would say. And I think clean transition is a very, very big issue that has a lot of potential because Finland has very good technology and know-how in that sector,” said Lähdevirta.
Replacing Chinese tech
“India does not want to rely on Chinese technology in sensitive areas. Finnish companies like Nokia can provide reliable alternatives for India in crucial sectors,” the Ambassador told ET Online.
He described Nokia’s Bangalore R&D center, which focuses on telecom and digital technology development including 5G base stations, as “very impressive,” noting that the company’s operations in India extend beyond its former handsets business.
Nokia is one of India's largest international telecom infrastructure manufacturers, and is expanding its footprint in the country, with a focus on local talent and research.
“We are going to hire more people in our R&D centre. Other than the R&D centre of about 8,000 people, we have around 4,000 people who are supporting all global service operations from India. It means there is a huge opportunity,” said Nokia India Country Manager Tarun Chhabra at an event last month.
He added, “When I talk to telecom operators around the world, they talk about cyber security as the most important thing now. I would say we are committed for 30 years, and we further commit that we are going to play a very important role in skilling the Indian people here, and then hiring them in our R&D centers in the future.”
A big China problem for India
India’s push for alternatives to Chinese technology is shaping its telecom and digital strategies, and Finnish companies can play a key role in providing secure, high-quality solutions while deepening bilateral trade and technological cooperation.
Dependence on Chinese technology has also created vulnerabilities in critical sectors, with Beijing tightening control over what it allows Indian companies to access. According to an Economic Times report, several Indian firms have seen technology transfer deals delayed because of new scrutiny from Chinese authorities, including in electronics, appliances and electric vehicles.
Industry executives told ET that Chinese companies have received “verbal” instructions to hold back or slow approvals for overseas technology-sharing agreements, particularly those involving mid- to large-sized firms.
This has left Indian manufacturers exposed to bottlenecks, with projects in components and EV technology pushed back due to Chinese approvals. Executives described the policy as Beijing using its “trump card” to retain an edge and negotiate from a position of strength — much like its control over rare earth supplies in the US.
For India, where sectors from telecom to auto components remain highly reliant on Chinese inputs, these delays reveal the strategic importance of diversification.
Industrial edge: What Finland brings to the table
Finland is positioning itself as a key partner in India's journey toward sustainable industrial growth and energy resilience, according to Ambassador Lähdevirta.
“Energy is another big sector where we already have big Finnish companies like Wärtsilä and Valmet operating here. And also, let's say technology related to biofuels, for example, has very good potential,” he told ET Online.
“We have sectors like maritime technology as well where we have companies like Wärtsilä, which is very big in that sector. But also, for example, on the environmental side, companies called LAMOR to deal with oil spills, for example, and other environmental issues,” he added.
Finland’s strength lies in industrial goods and services, particularly in areas like maritime engines and power generation technologies. Wärtsilä, a company specialising in next-generation engines that utilise advanced fuels, is a prominent example. These engines are designed for both maritime and land-based power generation, addressing India’s growing electricity needs.
“Things that have to do with making the grid smarter are very important. Finland has good technologies in that area,” the Ambassador said.
Finland is also at the forefront of developing sustainable fuels, particularly second-generation biofuels derived from non-edible materials. Lähdevirta noted that Helsinki has been introducing this technology to India, aiming to support the country’s clean energy transition. “Finland is really very advanced in developing biofuels from all kinds of materials... especially second-generation biofuels made of non-edible materials.”
With India’s rapid urbanisation, Finland also sees opportunities in construction technology. Companies like KONE, which manufactures elevators and escalators, are already present in the market. Ambassador Lähdevirta highlighted how Finnish firms are helping reduce the carbon footprint of construction, pointing to the country’s long tradition in precast building technology. He cited Elematic, a Finnish company producing precast elements, and recalled a visit to a major construction site in Hyderabad: “It was interesting to see how fast and how efficiently they were actually building.”
Innovation remains a cross-cutting theme in Finland’s India strategy. Finnish authorities have been working to build cooperation with startups and other innovative companies, bringing them to Finland for events like Slush. “We have seen some very good examples of Finnish software companies coming to India and really scaling up their businesses here,” he noted.
India-EU FTA: ‘A lot of work needs to be done’
The economic relationship between Finland and India is on a solid footing, according to Ambassador Lähdevirta.
“It is now some 3 billion euros in both directions, meaning exports and imports of both goods and services. And then we have some, let's say, 4 billion euros of cumulative investments from Finland to India and some 1 billion euros from India to Finland. So that's a very good basis,” he said.
He added that while the trajectory is positive, India is sometimes “overlooked” by Finnish businesses.
To bridge this gap, Finland hosted an India Roadshow in September 2025 with the Indian Embassy in Helsinki and Business Finland to raise awareness among local firms.
“I think we still need more of this sort of awareness, let's say, raising, so that both partners really see the benefits that the other one can bring,” he noted.
On the proposed India–EU Free Trade Agreement, Lähdevirta struck an optimistic but cautious tone.
“Well, we strongly support it and we really hope that both parties can reach a deal by the end of this year. I think it would really be beneficial and important for both sides and especially in the present situation where there's so much, let's say, uncertainty in the world,” he said.
At the same time, he added, “quite a lot of work is still needed before a deal can be reached,” and declined to predict whether it could realistically be done this year.
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