The Norwegian Pension Fund has stepped up its investments in India from US$1 billion to approximately US$3 billion. Currently more then 70 Norwegian companies from a variety of sectors present in India. Indians are topping the immigration quota of experts in Norway. This is people who have been headhunted to high skilled jobs.

“Despite global recession, Norwegian investments in India are dramatically rising. Even while quite a few international banks were going bust, due to the financial crisis, the Norwegian Bank DnB NOR opened a new branch office in Mumbai. Likewise, India’s Punjab National Bank recently entered the Norwegian markets. Both Norwegian portfolio investments (Eg: Government Pension Fund) and direct investments (Eg: Telenor) are on the increase. The strengthening of economic bonds is supplemented by a broader and deeper political and cultural co-operation. In fact, as I speak, our government is finalizing its work on a fully-fledged India-strategy,” says H.E Ambassador Ann Ollestad.

Ollestad underlines that the time is more than ripe for a concerted and comprehensive effort in engaging a dynamic and modern India.

Silver Lining

Norway’s economy grew 3 percent last year as many nations plunged into a recession.

As investors the world over sold in a panic, she bucked the tide, authorizing Norway’s US$300 billion sovereign wealth fund to ramp up its stock buying programme by US$60 billion — or about 23 percent of Norway ’s economic output. “The timing was not that bad,” Ms. Halvorsen said. And in the midst of the worst global downturn since the Depression, Norway’s economy grew last year by just under 3 percent. The government enjoys a budget surplus of 11 percent.

Strengths

Norway is a relatively small country with a largely homogeneous population of 4.6 million and the advantages of being a major oil exporter. It counted US$68 billion in oil revenue last year as prices soared to record levels. Even though prices have sharply declined, the government is not particularly worried. That is because Norway avoided the usual trap that plagues many energy-rich countries.

Instead of spending its riches lavishly, it passed legislation ensuring that oil revenue went straight into its sovereign wealth fund, state money that is used to make investments around the world. Now its sovereign wealth fund is close to being the largest in the world, despite losing 23 percent last year because of investments that declined.