PM Modi's Europe trip begins today: What India hopes to gain from better ties with Nordic countries

📌 Summary:

• PM Modi begins a four-nation Europe tour (Norway, the Netherlands, Sweden, Italy), headlined by the third India-Nordic Summit in Norway; the visit was postponed last year after Operation Sindoor
• The trip is part of India's push to deepen ties with Europe amid an unpredictable US, following the India-EU FTA; next month Modi will visit France for the G7 leaders' summit
• India-Nordic trade in goods and services reached $19 billion in 2024; over 700 Nordic firms operate in India; the summit aims to boost Make in India investment and Nordic pension-fund capital, reinforced by the India-EFTA TEPA (in force October 1, 2025)
• Each Nordic country brings strengths — Sweden (defence, innovation), Denmark (maritime, green tech), Norway (blue economy, Arctic), Finland (digital), Iceland (geothermal); all five are Arctic Council members and the summit aims to set up an India-Nordic Arctic cooperation mechanism
• Netherlands: India's largest European trading partner ($27.8 bn in FY25) and 4th largest investor; TATA Electronics and ASML are expected to sign an agreement to equip a semiconductor fab in Dholera, Gujarat; clean energy and water management feature via a visit to the Afsluitdijk Dam
• Sweden: Saab is building its first Carl-Gustaf plant outside Sweden at Jhajjar (India's first 100% FDI-driven defence project); cooperation spans critical minerals, 6G, AI and quantum computing
• Nordic countries support India's permanent UNSC membership; shared alignment on Indo-Pacific security, Arctic governance, climate action and a rules-based order

🎯 UPSC Relevance: GS2 — India's engagement with Europe and plurilateral groupings; trade agreements (India-EU FTA, India-EFTA TEPA); strategic diversification amid US unpredictability and a rising China; Arctic and Indo-Pacific cooperation.

📝 Prelims Facts:

• The India-Nordic Summit includes Norway, Sweden, Denmark, Finland and Iceland
• India-EFTA TEPA (EFTA = Iceland, Liechtenstein, Norway, Switzerland) entered into force on October 1, 2025
• TATA Electronics and ASML (Netherlands) are expected to sign a deal for a semiconductor fab in Dholera, Gujarat

🔑 Key Term: TEPA — the Trade and Economic Partnership Agreement between India and the European Free Trade Association (EFTA), which came into force on October 1, 2025.