EFTA investments begin flowing into India; Iceland pours $30 million into Maharashtra firm

New Delhi: Investments from the four-nation European bloc EFTA have begun flowing into India as part of their Trade and Economic Partnership Agreement (TEPA) with an Icelandic company investing $30 million in a firm in Maharashtra.

The TEPA was signed on March 10, 2024, and came into effect last year. Iceland, Liechtenstein, Norway, and Switzerland are the EFTA members.

Under the TEPA, India has received an investment commitment of $100 billion over 15 years, while lowering or removing duties on products like Swiss watches and chocolates. India will phase out customs duties under the trade pact on these goods over 10 years.


"There has been investment from Iceland in India in the fisheries sector. An Icelandic company has invested 30 million in a firm in Maharashtra...Similarly, there have been other initiatives in carbon capture and geothermal energy," said R Ravindra, India's ambassador to Iceland.

India's exports to the EFTA bloc were worth $1.97 billion in FY25, while imports were $22.44 billion. There is scope for India to increase its textiles exports to Iceland.

"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 FTA, in terms of trade, exports of goods and products from India to Iceland, and investment from Iceland into India," Ravindra said.