CHENNAI: Danish Industry will deploy Tamil Nadu engineers to Denmark under a joint pilot project with the state government, even as Danish companies expand research and development operations and scale up their Chennai presence to address skills shortages and support long-term investments.
Under the pilot, the Tamil Nadu government will identify candidates and Danish Industry will screen 50 mechanical engineering graduates for placement in Denmark, said Jesper Bollerup Gade, Managing Director of Danish Industry India.
Speaking after the inauguration of the Confederation of Danish Industry’s new office and workspace in Pallavaram, Chennai, Gade said the initiative reflects a shift in how Danish companies perceive India’s engineering talent.
“When Danish Industry first came to India in 2022, the idea was to scout for relatively cheaper manpower to do jobs Danish engineers found less attractive. That has changed,” he said. “Engineers in Chennai are so good that, in many cases, they are actually better than Danish engineers.”
The growing confidence in Indian talent has prompted Danish firms to move more innovation-led work, including research and development, to India, particularly Tamil Nadu. Gade noted that the Technical University of Denmark already collaborates with IIT Madras and discussions are under way with other technical institutions in Chennai.
Highlighting the deepening engagement, Gade said Danish Industry began operations in Chennai in 2022 with a 10-seater office in Guindy and has since expanded to a 140-seater facility in Pallavaram within four years, underscoring Chennai’s strategic importance for Danish businesses in India.
Engineers recruited under the programme will be paid on par with their Danish counterparts and supported through what Gade described as an ethical recruitment process, with a focus on individual welfare and cultural integration.
“This is a pilot project, but it will continue and is likely to expand to other areas depending on industry needs,” he said.
Beyond engineering talent, Danish companies are also exploring opportunities in India’s energy transition under the Green Strategic Partnership between the two countries. Gade said there is strong interest in Danish hydrogen production technologies, and efforts are under way to bring these to India, potentially leveraging a proposed free trade agreement with Europe.
India is competing with markets such as China and the United States for Danish investments, Gade said, adding that while India can be a challenging market, it offers compelling long-term partnership opportunities.
Lars Sandahl Sorensen, Chief Executive of the Confederation of Danish Industry, said Danish businesses have been present in India for more than a century, with the fastest recent growth concentrated in Chennai and Tamil Nadu.
“Chennai and Tamil Nadu are something special,” Sorensen said. “This region stands out for its vibrancy in development, skills and labour, as well as the current DMK government’s focus on attracting investment.”
Sorensen said discussions with Tamil Nadu Industries Minister T R B Rajaa focused on expanding Danish investments in the state. “The government is ambitious and keen to create the best possible conditions for business,” he said.
On the offshore wind project that failed to take off in Rameswaram, Gade said the company is reassessing its financial model. Offshore wind projects are significantly more expensive than onshore alternatives and depend on a different supply chain, he said, adding that developers are reluctant to bid without mechanisms such as government-backed viability gap funding.