New Delhi: Icelandic companies are eager to partner with Indian firms in fisheries, clean energy, and innovation. This interest comes after the recent free trade agreement between India and the European Free Trade Association (EFTA), which includes Iceland.
The Trade and Economic Partnership Agreement (TEPA) started on October 1, 2025, and aims to boost investment in India. It promises up to USD 100 billion in foreign direct investment over 15 years, potentially creating around one million jobs.
India’s Ambassador to Iceland, R Ravindra, highlighted recent developments, including a USD 30 million investment from an Icelandic firm in a fishery project in Maharashtra. This investment alone could create between 800 and 1,000 jobs in Aurangabad. Ravindra also noted significant opportunities for Indian exporters in Iceland, particularly in textiles, coffee, and pharmaceuticals.
“Collaboration is possible in biotechnology, clean energy, fisheries, and geothermal innovation. Icelandic companies see the Indian market as a great place to scale up,” he said. An Indian industry delegation plans to visit Iceland in May to explore these business opportunities.
The TEPA is reshaping trade between the two nations. India’s exports to Iceland reached USD 66 million in 2024-25, while imports were only USD 11 million. With the TEPA in place, Indian agricultural exporters can now access the Icelandic market duty-free. Before the agreement, many products faced hefty tariffs ranging from 10% to 220%.
For example, Iceland’s rice imports from India are just USD 0.6 million, while the overall market totals USD 29.1 million. Major suppliers like Germany and Thailand could see competition from India in rice exports as tariffs have been lifted.
Frozen seafood and ornamental fish are other promising categories. Iceland imports about USD 73.2 million in these products but has only sourced USD 1 million from India. Key competitors include the UK and Denmark, meaning there’s substantial room for growth for Indian exporters.
Raw sugar presents another opportunity. Iceland’s sugar imports total around USD 26.4 million, yet Indian contributions are minimal. With tariffs previously up to 55%, the new duty-free access could help Indian suppliers break into this market segment.
Vegetable exports also hold potential. Fresh and processed vegetables saw tariffs up to 30%, but Indian exports have been nearly negligible at just USD 0.1 million, compared to Icelandic imports of USD 44.6 million. Main suppliers in this area include Spain and the Netherlands.
Lastly, high-value processed foods, such as sauce preparations which once faced 220% tariffs, could significantly benefit from the new trade landscape. This market accounted for USD 91.1 million of Iceland’s imports, yet India’s share remains at just USD 0.1 million.
Overall, the TEPA opens new pathways for trade and investment, emphasizing a future filled with opportunities for both nations. As the business relationship improves, it will be interesting to see how social media and public sentiment shape perceptions about these new partnerships.
For more detailed information about the EFTA agreements, you may refer to EFTA’s official documentation.
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INDIA AND THE EFTA BLOC, ICELAND, INDIA ICELAND TRADE, ICELAND FIRMS KEEN TO INCREASE COLLABORATION IN FISHERIES, CLEAN ENERGY WITH INDIA: ENVOY
