New Horizons: Iceland-India Trade Booms Under Free Trade Agreement

Iceland and India are expanding business collaborations under a new free trade agreement with the EFTA bloc. This partnership aims to drive USD 100 billion in foreign investment and create one million jobs in India over 15 years. Key sectors include fisheries, clean energy, textiles, and pharmaceuticals.

In a move poised to reshape economic ties, Icelandic companies are eager to enhance collaborations with Indian firms in the wake of the newly implemented Trade and Economic Partnership Agreement (TEPA) between India and the EFTA bloc. This pact aims to steer USD 100 billion in foreign direct investment into India over 15 years, creating approximately one million jobs.

India's Ambassador to Iceland, R Ravindra, emphasized the burgeoning partnership, announcing a USD 30 million Icelandic investment in the Indian fishery sector. This collaboration, set in Maharashtra, is projected to generate 800-1000 jobs in Aurangabad. Additionally, Indian exporters have significant opportunities in sectors like textiles, coffee, and pharmaceuticals in Iceland.

The elimination of tariffs promises a fresh avenue for Indian agri exporters. Products such as rice, fish, and confectionery will gain duty-free access to the Icelandic market. Iceland's imports in categories like ornamental fish, sugar, and processed foods highlight potential growth for Indian exporters in an otherwise competitive high-income market.

(With inputs from agencies.)