Companies from Iceland are keen to enhance collaborations with Indian firms in sectors such as fisheries, clean energy and innovation by leveraging the recently implemented free trade agreement between India and the EFTA bloc, an official said.
India and the European Free Trade Association comprising Iceland, Liechtenstein, Norway and Switzerland implemented the Trade and Economic Partnership Agreement (TEPA) on Oct. 1, 2025.
The pact, signed on March 10, 2024, includes a commitment by EFTA countries to facilitate USD 100 billion in foreign direct investment in India over 15 years, with the aim of generating about one million direct jobs.
India's Ambassador to Iceland R Ravindra said the two sides will complete two years since the signing of the agreement on March 10 next week.
He said that an Iceland firm has announced an investment of $30 million in an Indian company in the fishery sector in Maharashtra.
This investment, he said, will create about 800-1000 jobs in Aurangabad.
He added that huge opportunities are there for Indian exporters in Iceland in areas such as textiles, coffee, and pharmaceuticals.
"Collaborations (are possible) in biotechnology, clean energy, fishery, geo-thermal and innovations, they (Iceland firms) could use the Indian market to scale up. There is a huge potential for investments," Ravindra said.
To explore business opportunities in Iceland, an Indian industry chamber is expected to visit with representatives in May.
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"Overall, we see a great deal of positivity. We have also made efforts to sensitise companies in both Iceland and India about the advantages offered by the TEPA, in terms of trade, exports of goods and products from India to Iceland, and investment from Iceland into India," Ravindra added.
India's exports to Iceland stood at $66 million in 2024-25, while imports aggregated at $11 million.
Under TEPA, huge opportunities are there for Indian exporters in the agri sector in Iceland and it includes rice, fish, cane sugar, vegetables processed food, pineapples, and confectionery.
These goods now can enter duty free in Iceland following the implementation of TEPA. Earlier these products were attracting import duties in the range of 10-220%.
The removal of tariffs is expected to create new opportunities for Indian agri exporters in a relatively niche but high-income market.
Iceland's imports of rice in the husk from India are currently only $0.6 million, while its overall imports from the world stand at $29.1 million. Major suppliers include Germany, Poland, Sweden and Thailand, suggesting that Indian exporters could potentially gain market share after the duty removal.
Another category with strong trade potential is live ornamental freshwater fish and frozen seafood, which earlier faced tariffs of up to 10%.
Iceland imports about $73.2 million worth of these products globally but only $1 million from India and $73.2 million from the world. Key suppliers include the United Kingdom, Russian Federation and Denmark, indicating that Indian exporters could expand shipments in this segment.
In the raw cane or beet sugar category, which earlier attracted tariffs of up to 55% Iceland imports around $26.4 million globally but virtually nothing from India. The market is currently dominated by suppliers such as Denmark, Sweden and the United Kingdom. Duty-free access may allow Indian sugar exporters to explore opportunities in this segment.
Similarly, fresh and processed vegetables, including dried onions, legumes, cucumbers and gherkins, earlier faced tariffs of up to 30%.
Iceland's global imports in this segment are around $44.6 million, while imports from India are minimal at $0.1 million. Major suppliers include Spain, the Netherlands and France.
High-value processed food segments also offer potential. For instance, preparations for sauces and prepared sauces, which earlier faced tariffs of up to 220%, account for Icelandic imports of about $91.1 million, though imports from India remain limited at $0.1 million.
Key exporters include Brazil, Sweden and the United Kingdom. Duty-free access could help Indian processed food exporters become more competitive.
Other categories with potential include prepared or preserved pineapples, malt extract and bakery products, and prepared or preserved fish, which previously faced tariffs of 52%, 145%, and 30%, respectively.
Iceland imports significant volumes of these products from countries such as Italy, Brazil, Denmark and Sweden, while India's share remains relatively small.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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