New Delhi, March 7 Companies from Iceland are keen to enhance collaborations with Indian firms in sectors such as fisheries, clean energy, and innovation, 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 October 1, 2025.
The agreement, 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 creating approximately one million direct jobs.
India's Ambassador to Iceland, R Ravindra, said that the two sides will complete two years since the signing of the agreement next week.
He said that an Icelandic firm has announced an investment of USD 30 million in an Indian company in the fisheries sector in Maharashtra.
This investment, he said, will create approximately 800-1,000 jobs in Aurangabad.
He added that there are significant opportunities for Indian exporters in Iceland in areas such as textiles, coffee, and pharmaceuticals.
"Collaborations are possible in biotechnology, clean energy, fisheries, geothermal energy, and innovation. Icelandic firms could use the Indian market to expand their operations. There is significant potential for investment," Ravindra said.
An Indian industry chamber is expected to visit Iceland in May to explore business opportunities.
"Overall, we see a great deal of positivity. We have also made efforts to educate companies in both Iceland and India about the advantages offered by the TEPA, including trade, the export of goods and products from India to Iceland, and investment from Iceland into India," Ravindra added.
India's exports to Iceland stood at USD 66 million in 2024-25, while imports aggregated at USD 11 million.
Under TEPA, there are significant opportunities for Indian exporters in the agricultural sector in Iceland, including rice, fish, cane sugar, processed vegetables, pineapples, and confectionery.
These goods can now enter Iceland duty-free following the implementation of TEPA. Previously, these products were subject to import duties ranging from 10 to 220 percent.
The removal of tariffs is expected to create new opportunities for Indian agricultural exporters in a relatively niche but high-income market.
Iceland's imports of rice husk from India are currently only USD 0.6 million, while its overall imports from the world stand at USD 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 previously faced tariffs of up to 10 percent.
Iceland imports approximately USD 73.2 million worth of these products globally, but only USD 1 million from India and USD 73.2 million from the world. Key suppliers include the United Kingdom, the Russian Federation, and Denmark, indicating that Indian exporters could expand shipments in this segment.
In the raw cane or beet sugar category, which previously attracted tariffs of up to 55 percent, Iceland imports around USD 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, previously faced tariffs of up to 30 percent.
Iceland's global imports in this segment are around USD 44.6 million, while imports from India are minimal at USD 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 previously faced tariffs of up to 220 percent, account for Icelandic imports of about USD 91.1 million, though imports from India remain limited at USD 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 percent, 145 percent, and 30 percent, respectively.
Iceland imports significant volumes of these products from countries such as Italy, Brazil, Denmark, and Sweden, while India's share remains relatively small.
