One-size-fits-all approach not for India: Vahanen

Finland's Prime Minister Matti Vahanen said he hoped the European Union would evolve a common position on the supply of nuclear technology following the recent Indo-US nuclear agreement, despite the "complex implications" of the deal.

Finland, which is a member of the Nuclear Suppliers Group (NSG), is scheduled to take over the European Union presidency in July 2006.

Vahanen told Business Standard that Finland is committed to a strong nuclear non-proliferation stand. While Finland appreciated India's track record on non-proliferation, it would discuss the Indo-US deal with its EU partners.

Vahanen discussed the Indo-US nuclear deal with Prime Minister Manmohan Singh during his current visit to India. His visit, the first official one by a Finnish prime minister in over four decades, has come in the wake of increasing interest in India among Finnish companies.

Vanhanen emphasised that both India and the EU had common challenges ahead and added that the forthcoming EU-India Business Summit (to be held in Helsinki in October) would provide an opportunity for better bilateral ties.

Some top Finnish companies such as the paper company Stora Enso are considering the possibility of investing in India, attracted by the country's growth rate.

Vahanen forecast that his country's investment in India in the next few years would be far more than that seen in the last 20 years. Bilateral trade between India and Finland is currently estimated to be close to $500 million.

Finnish government officials indicated that companies in the paper and pulp industry, engineering and technology, power sector, and environment management were considering investments in India on the heels of Nokia's investment of about $150 million in a manufacturing facility here.

Vahanen declined to talk about individual Finnish corporate investments in India, but said the interest in India has increased dramatically in the last three years.'

Finnish companies didn't plan a one-size-fits-all-approach, but might approach the Indian market with a strategy designed to meet Indian conditions, he said.