India and Denmark Deepen MSME Cooperation With Focus on Innovation, Technology and Startups

India and Denmark have agreed to strengthen cooperation in the MSME, innovation, technology and startup sectors, as the two countries expand economic engagement under their Green Strategic Partnership.

The discussions took place during the fourth India-Denmark Joint Working Group meeting in Copenhagen on 28 August 2026, involving India’s Ministry of Micro, Small and Medium Enterprises and the Danish Patent and Trademark Office (DKPTO).

Both sides reaffirmed their commitment to promoting technology adoption, innovation and intellectual property-led growth among small and medium enterprises, while identifying new areas for bilateral cooperation and knowledge exchange.

Focus on Innovation and IP-Led MSME Growth

The Joint Working Group discussions examined ways to help MSMEs improve competitiveness through technology, innovation and stronger intellectual-property ecosystems.

India’s delegation also engaged with Denmark’s Ministry of Business and Competitive Affairs, where officials exchanged views on SME development, business support systems and innovation policy.

The visit provided Indian officials with an opportunity to study Denmark’s institutional approach to supporting startups and smaller enterprises, particularly in areas such as mentoring, financing, research collaboration and industry linkages.

Indian Delegation Engages Nordic Startup Ecosystem

The Indian delegation also participated in TechBBQ, one of the Nordic region’s prominent startup and innovation events.

Dr Rajneesh, Additional Secretary and Development Commissioner in the Ministry of MSME, and Maria Skou, Deputy Director General and COO of DKPTO, took part in the event’s closing panel discussions.

The engagement allowed both sides to explore how India’s large MSME base and Denmark’s innovation-driven startup ecosystem could complement each other, particularly through technology partnerships and commercial collaboration.

Learning From Denmark’s Startup and Cluster Model

During the visit, Indian officials toured Aarhus University Innovation Kitchen and Agro Food Park, gaining insight into Denmark’s systems for startup incubation, fundraising, industry-academia cooperation and business clustering.

India, in turn, shared its experience with cluster-based MSME development, an approach used to improve productivity, common infrastructure, technology adoption and market access among geographically concentrated groups of small enterprises.

Such exchanges could create opportunities for joint programmes linking Indian MSMEs with Danish research institutions, startups and technology providers.

Green Strategic Partnership Provides Wider Framework

India and Denmark established their Green Strategic Partnership in 2020, creating a framework for cooperation across trade, investment, innovation, clean technologies and sustainable development.

MSMEs are increasingly important within this partnership because smaller firms play a major role in manufacturing supply chains, exports and technology diffusion in both economies.

Closer cooperation could also support collaboration in areas such as green manufacturing, food processing, clean energy, digitalisation and sustainable industrial technologies.

Bilateral Trade and Investment Continue to Expand

Economic links between India and Denmark have steadily broadened. Bilateral trade in goods stood at around $2.05 billion in 2025, while services trade reached approximately $4.25 billion.

Around 200 Danish companies have invested in India, while approximately 40 Indian companies maintain a presence in Denmark.

The commercial relationship spans sectors including renewable energy, shipping, engineering, pharmaceuticals, food processing, information technology and industrial equipment.

MSMEs Remain Central to India’s Growth

The talks are particularly significant given the scale of India’s MSME sector.

According to the Economic Survey 2025–26, MSMEs account for about 31.1% of India’s GDP, 35.4% of manufacturing output and 48.58% of exports.

Improving access to technology, intellectual property support, international markets and startup collaboration could therefore have a substantial impact on productivity and competitiveness across India’s broader industrial economy.

The latest India-Denmark engagement indicates that bilateral cooperation is increasingly moving beyond conventional trade towards innovation-led partnerships involving startups, research institutions and small businesses.

By combining Denmark’s experience in innovation and sustainable technologies with India’s large entrepreneurial and manufacturing base, the two countries are seeking to build a stronger MSME partnership capable of supporting future trade, technology transfer and industrial growth.

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