Finland-India Business Prospects 2007-2017

Abstract

Finland-India Economic Relations were researched for the first time in a study that analysed mutual trade and investment potential through the lens of revealed comparative advantage and identified profitably tradable goods at 4-digit and 8-digit disaggregated levels in the standard international trade classification (Mathur, 1998). This study was made freely available on the world wide web for five years through http:// www.uta.fi/kati as part of longitudinal action research to study how small and large players would take advantage of this freebie. This paper provides initial results of a sequel study initiated in 2005 to understand what happened thereafter, whether trade grew, and to analyse how trade could diversify from identification of new opportunities for product-services linkages after the expiry of the transitional period that brought GATS into effect in 2005. Finland's share in Indian imports and exports has grown rapidly and exponentially and the prospects are vast but the potential realised by 2007 remains considerably untapped and far below comparable figures for other EU countries. This study emphasises the need for policy research on institutional barriers to design new gateways beyond an increased frequency of contact between people from the two countries. The conclusion that robust bridges could be built through tripartite fora comprising business, government and academia points to the need for new institutionalities and deepening research studies, some of which initiated as part of the Finland-India Economic Relations project, are at various stages of progress and expected to be completed during 2007-2010.