New Delhi, Aug. 26 -- Danish companies are willing to absorb the higher initial cost of building ships in India as geopolitical tensions drive Western economies to diversify shipbuilding supply chains, Denmark's Ambassador to India Rasmus Abildgaard Kristensen said on Wednesday.

"Geopolitical uncertainties mean you cannot put all your eggs in one basket, and while the first couple of ships built in India will be more expensive than what you get in China or Korea-which have a fine-tuned machine with all sub-suppliers ready to go-Danish companies are willing to pay a smaller premium," Kristensen said during an interaction with reporters.

Kristensen said Denmark saw India as the strongest potential alternative as shipbuilding remains heavi...