India Norway’s Partnership In Trade, Sustainability

Policy Update
Mehul Rastogi

Introduction –

India and Norway have shared a long-standing partnership and bilateral relations since February 1947, which have strengthened over the years. 2027 will mark 80 years of diplomatic relations between India and Norway. They have bilateral connections on a wide range of sectors covering trade, investments and technology, shipping and maritime transport, hydroelectricity, IT, biotechnology, renewable energy, among others, which have given further motivation to already existing strong relations between the two sides.

The total bilateral trade between them grew from USD 1.05 billion in 2019-20 to USD 1.20 billion in 2023-24, clocking a Compound Annual Growth Rate (CAGR) of 2.61% during the five years between 2019-20 and 2023-24. India exports agricultural and allied commodities to Norway, while marine products and dairy products are imported from Norway.

The March 2024 Trade and Economic Partnership Agreement (TEPA) with EFTA set the economic foundation by opening market access and signalling ambitions for large‑scale investment and services mobility. Building on TEPA, the bilateral agenda has broadened to include a Green Strategic Partnership that focuses on renewable energy, carbon management, blue economy, and Arctic cooperation. Prime Minister Narendra Modi’s first-ever visit to the land of the midnight sun in May 2026 has been seen as a substantial outcome, with both countries declaring the upgradation of India-Norway relations to a Green Strategic Partnership, ensuring increased collaboration across sectors ranging from Clean Energy to Climate Resilience and from Blue economy to green shipping.

Functioning

India-Norway Trade and Investment – India and Norway host annual Dialogues on Trade and Investments (DTI), reviewing the global and domestic economic outlook and noting the need for resilient supply chains, energy security, climate transition, and stronger trade and investment linkages in a period of geopolitical uncertainty. The third session of DTI was held on April 16^th, where both sides agreed to intensify efforts in trade diversification and promote mutually beneficial business initiatives.

Another pillar supporting the India-Norway engagement is the Double Taxation Avoidance Agreement (DTAA). This agreement enables an individual to eliminate the burden of double taxation on their income earned in one country and transferred to another. Ensuring both businesses and Individuals are not taxed twice on their income. This significantly enhances the appeal of bilateral trade between the two nations.
India maintains observer status in the Arctic Council and has a permanent operating research centre, ‘Himardi’ established in 2008 at Ny-Ålesund, Svalbard.

India – European Free Trade Association (EFTA) Trade and Economic Partnership Agreement (TEPA)
EFTA has offered India 92.2% of tariff lines encompassing 99.6% of India’s exports under TEPA. This includes 100% of non-agricultural products and tariff concessions on Processed Agricultural Products (PAP).
In return, India has offered to EFTA 82.7% of tariff lines, accounting for 95.3% of EFTA exports. Over 80% of these imports are Gold, with no change in effective duty on Gold. Norway is the second-largest trading partner for India among EFTA countries.

India and Norway Green Strategic Partnership
India’s Prime Minister Narendra Modi’s first official visit to Norway concluded with a joint statement and increased collaboration for a strategic green partnership. Collaboration in sectors ranging from Clean Energy to Climate Resilience, Blue Economy to green shipping. Particularly, they agreed to share information on greenhouse gas and other non-CO2 emissions, and to explore further collaboration within forests and biodiversity. Further, both the nations agreed to support cost-effective, competitive and scalable technologies, to efficiently and sustainably utilise available resources and strengthen the circular economy, including by observing the principles of Mission LiFE for more sustainable lifestyles.

Performance

The Bilateral trade volume between India and Norway stands at around USD 2 billion as of 2025, when combined with robust service sectors. Total exports amount to USD 431 million, and total imports amount to USD 697 million. India’s services exports to Norway stood at USD 876 million in 2024, highlighting the growing role of services in the bilateral economic partnership. While India’s exports to Norway consistently increased from 2020 to 2023, they fell by 11.01% in 2024. India’s exports to Norway have recorded an overall CAGR of 8.54% from 2020-24.

Source: ITC Trade Map

Between April 2025 and April 2026, India’s exports increased by $7.39M (17.3%) from $42.6M to $50M, while imports increased by $6.48M (8.22%) from $78.9M to $85.3M. The major commodities exported by India in 2025 included Organic chemicals, Products of the milling industry like malt, starch, inulin, Ships boats and floating structures, Nuclear reactors and boilers and machinery.

The major commodities imported by India from Norway include Mineral fuels, mineral oils and products of their distillation, Nickels, fertilisers, Iron and Steel and ships, boats, and floating structures.

Source: DGCIS (2015)

Source: DGCIS (2025)

A significant development in the Blue Economy cooperation came in 2018, when Norway launched its strategy “Norway–India 2030” ahead of Prime Minister Erna Solberg’s State Visit to India in January 2019. This roadmap emphasised sustainable ocean management and included goals like reducing marine pollution and enhancing the sustainable use of ocean resources. India and Norway have signed multiple MoU’s also to strengthen this partnership.

Impact

Economic gains through TEPA
Tariff lines encompassing and TEPA’s reduced costs for a range of agricultural commodities and aligned products reduce export costs for MSMEs and create space for tracing supply chains. Duty‑free access for rice, vegetables, nuts, honey and marine products, as per the outcomes of DTI, also boosts exports significantly. The partnership also promotes EFTA states to invest USD 100 billion in India over 15 years to facilitate the creation of 1 million direct jobs, while India highlighted the establishment of an EFTA Desk under Invest India to support EFTA businesses.

Advancing Sustainability and Climate Cooperation through technology transfer
Joint research hubs and R&D will help India to adapt to Norwegian technologies like Ocean sensors, floating wind, offshore wind, and CCUS (Carbon Capture, Utilisation or Storage) components to Indian geographies. Norwegian funds such as Norfund and KLP investing will reduce financial gaps for capital-intensive projects like floating wind and CCUS. These pilot projects will help India address Sustainability Development Goal (SDG) 13 and a critical step towards net-zero emissions 2070. It will also benefit India in transferring knowledge and capacity building by embedding training in curriculum development and joint PhD/post‑doc programs

Diplomatic Relations
Norway joined India’s Indo-Pacific Oceans Initiative (IPOI), aligning maritime strategies. The IPOI is India’s flagship framework for promoting a free, open, and rules‑based Indo‑Pacific, with cooperation pillars spanning maritime security, disaster risk reduction, sustainable resource management, and connectivity. By formally associating with this initiative, Norway signals its commitment to working alongside India in safeguarding sea lanes, advancing sustainable ocean governance, and ensuring maritime stability amid growing geopolitical uncertainty.

Emerging Issues

– Financing gap for large-scale green projects
India’s ambitious target of net-zero carbon emissions and renewable targets requires massive capital, while Norway’s climate investment fund is catalytic; it is still limited relative to India’s needs. The MoUs signed by the nations to target this situation is also non-binding in nature. Operationalising TEPA investment targets into sectoral Joint Action Plans should reduce the risk of failure of translating pledges into bankable pipelines.

– Lack of Skill Hubs for technological transfer
India currently does not have a single dedicated skill hub to introduce technologies like Offshore wind, CCUS, Ocean sensors or green shipping. India will have to embed these technologies into their geographies and ensure local industry participation. Due to this there will be missed opportunities in job creation and industrial upgradation.

– Supply chain resilience amid geopolitical uncertainty
Rapid project pipelines create short‑term import dependence. Early stages of offshore wind, CCUS and grid expansion require specialised imported equipment and vessels before domestic suppliers scale up, temporarily widening import exposure. Geopolitical disruptions like the Middle Eastern conflicts create choke points, sanctions increases freight costs, insurance and lead times, directly affecting project economics and timelines.

Way Forward

Now the partnership between India-Norway stands at a pivotal juncture. These high-level agreements need to be converted into tangible outcomes. The Trade and Economic Partnership Agreement (TEPA) has already opened market access and reduced costs for Indian exporters, but the next step is to operationalise these concessions by building sector‑specific project pipelines. By designing Joint Action Plans (JAPs) for offshore wind, CCUS, green hydrogen, the blue economy, digital public infrastructure and space, both sides can ensure that tariff liberalisation and services mobility are directly linked to bankable projects and export pathways for Indian MSMEs and service firms.

Resilience must be strengthened by addressing non‑tariff barriers. Sanitary and phytosanitary (SPS) standards and technical barriers to trade (TBT) often limit the full potential of agricultural and industrial exports. By fast‑tracking mutual recognition agreements and enhancing certification support, India and Norway can reduce compliance costs and stabilise supply chains.

References

India Writes. (May 20, 2026) Scripting a green & blue chapter in India-Norway strategic partnership.
Scripting a green & blue chapter in India-Norway strategic partnership | India Writes

Akashvani News. (2026, May 18). India, Norway elevate bilateral ties to Green Strategic Partnership focusing on clean energy, blue economy.
India, Norway elevate bilateral ties to Green Strategic Partnership focusing on clean energy, blue economy | Akashvani News

Press Information Bureau. (17^th April, 2026) India and Norway hold 3rd Session of Dialogue on Trade and Investment; underscore TEPA’s role in strengthening bilateral economic ties.
Press Release Page | Press Information Bureau

Government of India & Government of Norway. (2026, May 18). India-Norway joint statement. Retrieved June 25, 2026
India-Norway Joint Statement (May 18, 2026)

Department of Commerce, Government of India. (2026) Trade Intelligence and Analytics (TIA) Portal.
Trade Intelligence and Analytics (TIA) Portal | Department of Commerce

The Hindu. (2026, May 18). India, Norway seal green strategic partnership in landmark visit. Retrieved June 25, 2026
India, Norway seal green strategic partnership in landmark visit

Ministry of External Affairs, Government of India. (2026, May 18). India-Norway joint statement
india-norway-joint-statement.pdf

India-Norway Report. (2026). India–Norway Report_Web. Government of India & Government of Norway.
India – Norway Report_Web

Press Information Bureau. (2026, May 18). India-European Free Trade Association Trade and Economic Partnership Agreement (TEPA) to come into effect on 01 October 2025. Government of India.

Press Release Page | Press Information Bureau

About the Contributor

Mehul is currently working as a Research and Editorial Intern, graduated with a degree in Liberal Arts and a specialisation in Economics, and a minor in political science. His work has basically revolved around Developmental Economics and Labour Economics.

Acknowledgement

The author sincerely thanks the IMPRI team for their constructive comments and editorial guidance during the review of this policy update. The author also extends his sincere thanks to Paridhi Passi and Shreeya Dixit for their valuable feedback, useful suggestions, and support in shaping this article