New free trade agreement between India and Norway (EFTA)
India's tariffs are currently among the highest in the world. Under the agreement, more than 90% of Norwegian exports to India will become tariff-free after a phase-out period of up to 10 years.
With a population of nearly 1.5 billion and a growing middle class with increasing purchasing power, India offers an attractive market for Norwegian exporters. The agreement gives the EFTA countries a unique position in India and significantly strengthens the competitiveness of Norwegian companies compared with those in other European countries.
What does the agreement cover?
The free trade agreement gives Norwegian companies advantages that their European competitors do not yet have. Neither the EU nor the UK has ratified its free trade agreement with India, giving Norwegian businesses a head start in the Indian market.
«The free trade agreement gives Norwegian companies a historic opportunity in one of the world's fastest-growing markets. Lower tariffs, clearer framework conditions and India's strong ambitions for the green transition now give Norway a genuine competitive advantage – particularly over other European countries that have yet to ratify an agreement.»
The agreement with EFTA was ratified on 1 October 2025. Ratification means that each country's legislative body – the Norwegian Parliament in Norway – approves the agreement and makes it binding under international law. This means that tariffs on goods and services began to be phased out on 1 October last year. For most of the product groups concerned, the phase-out periods range from 5 to 10 years. You need to consult the annexes to the agreement and check each product to find the applicable phase-out schedule and tariff rates.
The agreement places particular emphasis on promoting investment in India. Through greater cooperation and transparency, the countries will facilitate and promote mutual investment to support economic growth, innovation and the green transition. The ambition is for foreign direct investment from EFTA countries in India to increase by USD 100 billion over 10 years. The agreement also includes a chapter on cross-border competition, dispute resolution mechanisms and the protection of intellectual property rights (IPR). This will help streamline the export process to India and provide Norwegian and Indian trading partners with a clearer framework.
In the free trade agreement, India reaffirms its commitments under the Paris Agreement and to the International Labour Organization (ILO) standards on workers' rights. This is the first time India has agreed to include a reference to human rights in a trade agreement. Trade between India and the EFTA countries will contribute to sustainable and inclusive growth. The countries recognise that non-discrimination and gender equality are important elements in developing a sustainable trade policy. Active cooperation between the public and private sectors, the exchange of technology and best practices, and investment in green innovation and development are highlighted as particularly important ways to support sustainable development. The agreement includes a range of measures to protect human, animal and plant life.
Market opportunities in India
India has risen to fourth place among the world's largest economies and is expected to climb further in the years ahead. With a population of nearly 1.5 billion and a green transition on the horizon, India is a market Norwegian exporters should watch closely. In the coming years, India will need green technology across every part of society, from renewable energy to mobility. Norway is at the forefront of developing and producing this type of technology. The opportunities created by the free trade agreement, combined with market demand, make India an attractive prospect for Norwegian companies that can contribute to the green transition. Given the new geopolitical landscape, India stands out as an attractive market with political leaders committed to rules-based trade with countries such as Norway.
Minister of Trade and Industry Myrseth has also highlighted seafood as a sector that will benefit significantly from the free trade agreement. The sector previously faced tariffs of around 33%, and tariffs on many seafood products will be reduced to zero. Frozen whole salmon can already be exported to India tariff-free. For many other seafood products, the tariff has been reduced to 20%.
Industrial goods were also subject to high tariffs in India before the free trade agreement. Under the agreement, manufacturers of industrial goods will benefit from zero tariffs and greater competitiveness.
Although trade between Norway and India remains modest, it has grown over the past decade. The free trade agreement is expected to accelerate this growth. Norway’s exports to India currently consist largely of petroleum products, nickel, fertiliser, steel and aluminium. India is also investing heavily in the maritime sector and aims to become a major shipping nation, creating new opportunities for Norway’s maritime industry. In 2024, Norway exported goods worth approximately NOK 17 billion to India.
India is known for its technology sector, pharmaceutical industry, textile production and, not least, IT outsourcing. Imports from India to Norway were worth around NOK 22 billion in 2024, and the figures show an upward trend in 2025–2026, driven particularly by textiles, clothing, machinery and pharmaceutical products. India is now one of Norway's key trading partners in Asia.
Building relationships is essential when exporting to the Indian market. Indian businesses value networks and contacts. This free trade agreement gives you an opportunity to gain a head start on European competitors. Establishing partnerships and contacts early will put you in a strong position once the agreement's tariff phase-out period ends and zero tariffs take effect.
Where can I find more information?
The agreement has entered into force, and tariff reductions have already begun, with one round on 1 October 2025 and another on 1 January 2026. The reduction schedule and tariff rates will vary by product and sector.
Here you will find, among other things, Annex 2C.2, which shows the tariff rate that applies before the agreement is ratified, what it will change to, and Norway's tariff reduction schedule.
Are you a Norwegian company considering exporting to India? Click the button below to contact our export and internationalisation advisers for more information and guidance.