The India-Norway Business Forum on Monday witnessed a frank exchange of regulatory and other challenges faced by Norwegian companies in their Indian operations, with Prime Minister Narendra Modi highlighting the reforms implemented by New Delhi in the area of taxation and labor law to improve the ease of doing business.
Modi and his Norwegian counterpart Jonas Jahr Sture participated in the Norway-India Business and Research Summit in the cavernous Oslo City Hall. The event was attended by CEOs of leading Norwegian companies such as Orcla, Yara and Equinor, which have a significant presence in the Indian market.
Storr asked the Norwegian CEOs to share their experiences of working in India, emphasizing the need for greater economic cooperation between “natural and complementary partners” like Norway and India, who believe in a rules-based system and stability in trade at a time when “major players” in the international community are “weaponizing diplomacy and trade value chains to some extent.” [and] Critical Rare Materials.”
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Sven Tore Holsether, CEO of Norwegian Yara, one of the world’s leading fertilizer producers, spoke about the regulatory difficulties and “ground-level challenges” his company faces in India. Yara has been present in India for 15 years, and acquired a fertilizer production plant in Babrala, Uttar Pradesh, from Tata Chemicals in 2018, marking the first foreign direct investment in India’s fertilizer sector.
In response to a question from Støre about the changes needed to accelerate progress in India, Holsether highlighted “improving the ease of doing business in crop nutrition by simplifying fertilizer registration timelines in India.” [and] Faster approvals,” and “some challenges at the ground level… creating uncertainty around the growth of our business in Uttar Pradesh.”
He also said that establishing local production of diesel exhaust fluids at Yara’s urea plant requires a regulatory framework to support it.
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Orkla CEO Niels K. said: Celti, the trade and economic partnership agreement signed by India and EFTA last year has created predictability and transparency, which are essential for long-term investments and cross-border operations. He added that such deals “reduce uncertainty and support long-term stable growth based on the principles of global trading systems.”
Anders Opedal, CEO of Equinor, said his company supports India’s energy security with reliable and diversified supplies. “We supply about two million tons of LPG, which is important for cooking gas, and approximately 25 to 30 million barrels of crude every year,” he said.
Equinor has also begun its first long-term supply of LNG to India, with the first shipment being delivered to a fertilizer company last week. “I hope we can make more efforts to enhance energy security in both countries and create long-term value,” Obedal said.
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In his remarks, Modi said his government is constantly working to improve the ease of doing business through proactive steps, including next-generation reforms in taxation, labor law and governance. He said that a dedicated trade facilitation office has been set up for Norway under the Invest India programme. “My main message is please expand your scope and ambition in India. I invite you to come to India, I have assured you, in a way, the ball is in your court,” he said.
Referring to India’s goal of generating 500 gigawatts of clean energy by 2030, Modi called on Norway to be “an important stakeholder in India’s green energy future.” He also called on Norway to take advantage of India’s policy stability and incentives to become a major partner in the shipbuilding sector.
With 10% of Norwegian ships currently being built in India, Modi said there is potential to increase this proportion to 25% within five years.
