India / COVID-19 showed risk of dependence of supply chain on single source: PM

New Delhi: India and Denmark on Monday discussed the extradition of Purulia arms drop accused Kim Davy and global supply chain diversification and agreed to cooperate on technology to deal with stubble-burning among other issues, in a virtual meeting Prime Minister Narendra Modi held with his Danish counterpart Mette Frederiksen.

At the beginning of the meeting, Prime Minister Modi said, “Covid-19 has shown that it is risky for global supply chains to be highly dependent on any single source. We are working together with Japan and Australia for supply-chain diversification and resilience. Other like-minded countries can also join this effort.” His comments come at a time when more and more countries are moving away from their dependence on China.

The prime minister also highlighted the government's 'Aatmanirbhar Bharat' (self-reliant India) initiative as well as various reform measures in the areas of agriculture, taxation and labour market.

"We are focusing on all-round reforms under the (Aatmanirbhar Bharat) initiative," he said, adding companies working in India will be benefited from regulatory and taxation reforms. Denmark is a key country in Northern Europe with whom India's bilateral trade ties witnessed a significant expansion in the last few years.

According to official figures, bilateral trade in goods and services between India and Denmark grew by 30.49 per cent between 2016 and 2019 as the trade volume rose from USD 2.82 billion to USD 3.68 billion.

Around 200 Danish companies have invested in India in sectors such as shipping, renewable energy, environment, agriculture and food processing. Nearly 5,000 Indian professionals are working in major Danish companies, while 20 Indian IT companies are operating in Denmark for decades, according to official data.

After the meeting, Joint Secretary in the Ministry of External Affairs, in charge of Central Europe, Neeta Bhushan said the two leaders also discussed the issue of Kim Davy’s extradition. She also said Danish companies have technologies to deal with the issue of stubble burning and are willing to share them with Indian partners. Stubble-burning at this time of the year leads to air pollution, especially in northern India.

The two sides also elevated the partnership to “Green Strategic Partnership,” according to a joint statement.

“The Green Strategic Partnership is a mutually beneficial arrangement to advance political cooperation, expand economic relations and green growth, create jobs and strengthen cooperation on addressing global challenges and opportunities; with a focus on an ambitious implementation of the Paris Agreement and the UN Sustainable Development Goals,” the statement said.

Major Danish companies such as Grundfos, Danfoss, Vestas, LM Wind, Novozymes, Rockwool, Haldor Topsoe, etc. have set up factories and manufacturing facilities in India under the 'Make in India' scheme.