2. Business Opportunities in India

In covering economic development and its opportunities, this chapter draws on official information reported in the Economic Survey 2017‐2018, published by the Ministry of Finance, Government of India. Further details are available at http://​mofapp.​nic.​in:​8080/​economicsurvey/​.

Consistency requires that ‘traders of the bag’ be distinguished from ‘traders of the tent’. It is one of the travesties of globalisation that multinational firms operate in foreign countries under flags of convenience different from their true identities. Is a Swedish or Austrian or American firm to be counted as Finnish in India just because it also has some business in Finland? Does a Finnish firm’s investment in China become Finnish simply because it partly carries a Finnish name (like Ahlström Pte. of Shanghai) and is such a Chinese company’s presence in India to be regarded as Chinese or Finnish? For the sake of bilateral clarity in Indo-Finnish economic relations that would govern reciprocity in ‘national treatment’ for GATS, a limited liability company must be regarded as an artificial juridical person of a particular territory and it would be misleading to consider a company as ‘Finnish’ in India if it did not exist in India as a Finnish subsidiary or joint venture or if its branch in India did not have some direct ownership or control from a company in Finland.

During 1995–2001, Finland’s annual growth rates of labour productivity exhibit a skewed distribution. The highest growth rates were in electronic valves and tubes (60%), office machinery (43.6%) communications (12%) and financial intermediation (8.7%), whereas labour productivity declined in education, health care, research and development, scientific instrument making, transport equipment, construction, mining, radio and television receivers, hotels and catering, shipbuilding and repairs, insurance and other business activities (O’Mahony and Van Ark 2003, pp. 126–127).

During the 1990s, about a third of Finland’s growth in GDP could be attributed to Nokia. This changed. From 2001 onwards, Nokia expanded its activities abroad rather than in Finland. However, its draft on national assets, public outlays and community resources of Finland continued to remain considerable and became disproportionate to what it was contributing to Finland.

As described in official documents on the Government of India website http://​pibphoto.​nic.​in/​documents/​rlink/​2017/​oct/​p2017102504.​pdf.

https://​timesofindia.​indiatimes.​com/​business/​india-business/​india-fastest-growing-domestic-aviation-market-globally-economic-survey/​articleshow/​62695189.​cms?​utm_​source=​contentofin.

http://​petroleum.​nic.​in/​sites/​default/​files/​AR16-17.​pdf.