In order to expand the economic ties, India and Denmark are taking their relations to a 'green strategic partnership'. This move would also focus on green growth and aid in combating global challenges like changing climate.

During the first virtual summit held between Prime Minister Narendra Modi and counterpart from a European Union nation, Danish Prime Minister Mette Frederiksen, this decision was made. Alongside this, both the leaders also came in terms to expand their cooperation on ways to fight COVID-19 and future pandemics by developing vaccines.

They further sorted out the issue of Danish national Kim Davy, the main accused in the Purulia arms drop case held in 1995. This issue had created a rift in India-Denmark ties in 2012, thus, both the sides agreed to resolve the issue and assured that the concerned officials would work on it.

At the meeting, Modi stated that the events of the past few months have pointed out the necessity of like-minded countries like India and Denmark, which share a rules-based and democratic value system, should work together. However, the Covid-19 pandemic has further made us realize that it is risky for global supply chains to rely heavily on any single source.

Modi further adds, “We are working together with Japan and Australia for diversification and resilience of supply chains. Other like-minded countries can join this effort."

The new green strategic partnership is expected to build on an existing Joint Commission for Cooperation that has been created in 2009. This commission mainly focuses on the cooperation in politics, science and technology, economics and commerce, energy, environment and education. It is also expected to aid the existing joint working groups on renewable energy, agriculture, urban development, shipping, innovation, labor mobility and digitization.

In 2012, India had scaled-down all the ties with Denmark to signal its displeasure with the refusal of Danish officials to appeal in the Supreme Court against a lower court’s order barring Davy’s extradition. Both the countries have finally come back together on an even keel in 2018, as they chose to separate the Davy issue from the other relationship.

As over 140 Danish companies having a presence in India, Narendra Modi has proposed the creation of “India-Denmark energy parks” in areas that has numerous Danish firms and an “India-Denmark skill institute” to upskill Indian manpower.